SBA deposit

by a searcher

1 year ago

Is it possible to use my credit card (cash advance) or a personal loan to pay for the 5% - 10% equity required by the SBA?
My credit card company allows me to take a cash advance and my Bank has also approved me for a personal loan. 
Would the SBA allow me to use either of these two methods as my equity into the deal?
Thank you in advance for your help and suggestions.

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4 comments

lender from Florida State University

SBA lenders will require the source of injection to be purely equity - cannot be borrowed funds of any degree as Daniel had mentioned above. If liquidity may be an issue, clients will sometimes lean on gifted equity from business partners, family, friends, etc. The HELOC route that Brad mentioned is also viable (if you have repayment ability for the home equity loan portion).

1 year ago | like reply | 0 likes

intermediary from Naval Postgraduate School

Im not entirely sure but if the cash in your checking/savings account for the 90 days prior to closing It can be used to satisfy all or part of your downpaymnet. Of course, if you take a cash advance from your credit card, that will be evident to the lender.

1 year ago | like reply | 0 likes

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