Seasoning of funds

Definition

The rule that your injection has sat in your own accounts a while.

Why It Matters

A gift or a last-minute transfer is not disqualifying, but an undocumented one stalls underwriting at the worst possible moment, which is inside exclusivity with a closing date already promised. Move the money into one account early, keep the statements that show where it came from, and get a signed gift letter the same week rather than the week the lender asks. The rule exists because the SBA wants the injection to be genuinely yours and not a second loan wearing a friend's name.

In numbers: A lender tracing a $200,000 injection wants two or three months of statements showing where it sat; $60,000 that appeared last week needs a paper trail, and if it was a gift, a signed gift letter saying no repayment is expected.