Are there any SBA rules regarding the Proof of Funds from Investors?

by a searcher from St. John's University

5 months ago

Are there any SBA 7(a) rules regarding the source/proof of funds from investors who will hold less than 19% equity and will not provide a personal guarantee?"

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lender from Eastern Illinois University

I agree with the above. It is required for both investors and borrowers, both with SBA and conventional. Not only is it an SBA rule but it is also an anti-money laundering rule where Banks need to verify sources of equity in transactions.

4 months ago | like reply | 0 likes

lender from Sam Houston State University - College of Business Administration

Unfortunately, we have to source all of the funds going into the business for equity via bank statements or stock accounts, even if it is coming from minority non-guarantor partners. I had one with over 30 different investors that we had to get bank statements for. Not fun, but part of the process and something the minority partners should know about up front.

4 months ago | like reply | 3 likes

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