Is the document legally binding?

The schedule itself documents financial allocations but does not by itself create obligations unless incorporated by reference into binding agreements. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.

When is notarization required?

Notarization is generally not required for a Sources and Uses schedule alone, but certain related instruments (deeds, powers of attorney) may require notarization or witnesses under state law. Check the specific instrument and state notary rules before execution.

Can I use eSignature for this document?

Yes. Electronic signatures meet ESIGN and UETA requirements if they demonstrate signer intent, consent to electronic records, attribution, and durable record retention. For consumer-facing financial records include any required ESIGN consumer disclosure where applicable.

What if sources and uses do not match?

Do not finalize the schedule. Reconciling differences is required before closing; unresolved gaps may delay funding, trigger covenant defaults, or require bridge financing to cover shortfalls.

Who must sign the schedule?

Signatures typically include the borrower’s authorized officer(s), the investor or lender signatory where required, and any escrow or closing agent certification. Authority should be documented in corporate resolutions or subscription agreements.

How long should I retain signed copies?

Retain signed and final copies for at least three years to satisfy IRS baseline requirements (IRC §6501(a)); extend retention for industry-specific rules such as HIPAA (6 years) or where state law requires longer periods.

Electronic Signature
Templates
Miscellaneous
Business Sources Uses Document

Business Sources Uses Document

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS SOURCES & USES STATEMENT

Parties

Company Name: Company Address: Counterparty Name: Counterparty Address:

Whereas

WHEREAS, this Business Sources & Uses Statement (the "Statement") is made effective as of and is entered into by and between Company Name: and Counterparty Name: .

WHEREAS, the Parties intend to undertake the transaction or project described as Project Name: for the purpose of identifying, allocating and documenting all sources of funds and the planned uses of those funds.

WHEREAS, the Parties desire that sources and uses be presented in sufficient detail to permit the Parties, their counsel, auditors and financing sources to rely on the allocations set forth in this Statement in connection with closing, funding and internal controls.

Scope of Work

Describe the scope of operations, milestones or deliverables that will be funded by the sources listed below. Include performance milestones, budgetary controls, and acceptance criteria.

Sources of Funds

List each commitment, grant, equity, debt or cash contribution that will fund the project. Enter amounts in the currency agreed by the Parties.

Source 1 — Description: Source 1 — Amount: Source 2 — Description: Source 2 — Amount: Source 3 — Description: Source 3 — Amount: Other Sources — Describe: Other Sources — Amount: Total Sources:

Uses of Funds

Identify how each dollar will be applied. Include working capital, capital expenditures, transaction costs, reserves and fees.

Use 1 — Description: Use 1 — Amount: Use 2 — Description: Use 2 — Amount: Use 3 — Description: Use 3 — Amount: Other Uses — Describe: Other Uses — Amount: Total Uses:

Payment Terms

Total financing or contribution amount to be provided under this Statement:

Payment Schedule (milestones, dates or amounts):

Late payment: interest or fee assessed on amounts not paid when due. Specify rate and grace period below.

Late Fee (annual % or fixed): Late Fee Grace Period (days):

Term and Termination

This Statement shall commence on Start Date: and shall terminate on End Date: unless earlier terminated in accordance with this section.

Either Party may terminate this Statement for cause upon written notice to the other Party if the other Party materially breaches any provision and fails to cure the breach within Notice Period: days following receipt of written notice. Termination shall not relieve either Party of accrued obligations prior to the effective date of termination.

Confidentiality

Each Party agrees to hold in confidence and not disclose Confidential Information of the other Party except (a) to its employees, agents, legal advisors and lenders on a need-to-know basis subject to confidentiality obligations at least as protective as those set forth herein; (b) as required by applicable law, provided the disclosing Party provides prompt notice to the other Party to allow a protective order or other remedy; or (c) information that is or becomes publicly known through no wrongful act of the receiving Party. Confidential Information does not include information that is independently developed without use of the discloser's Confidential Information.

Governing Law; Entire Agreement

This Statement shall be governed by and construed in accordance with the laws of the State of without regard to choice of law principles. The Parties expressly consent to the exclusive jurisdiction of the courts located in that State for any dispute arising out of or relating to this Statement.

This Statement, together with any schedules or exhibits expressly incorporated herein, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written. No amendment, modification or waiver of any provision of this Statement shall be effective unless in writing and signed by authorized representatives of both Parties.

Representations and Certifications

Each Party represents and warrants that it has the full right, power and authority to enter into this Statement, that the execution and delivery of this Statement has been duly authorized, and that this Statement is a valid and binding obligation enforceable in accordance with its terms. Each Party further certifies that the information provided herein with respect to sources and uses is true and complete to the best of that Party's knowledge as of the Effective Date and will be updated in writing promptly if material changes occur prior to closing or funding.

Company — Printed Name:

By:

Date:

Counterparty — Printed Name:

By:

Date:

What the Business Sources Uses Document Is

The Business Sources Uses Document is a financial schedule that pairs each funding source with the exact use(s) of those funds for a transaction, project, or capital plan. It typically lists committed equity, debt tranches, seller financing, and expected cash on hand alongside detailed uses such as purchase price, closing costs, fees, working capital, and contingency reserves. Lenders, investors, and internal finance teams use it during diligence and closing to confirm that total sources equal total uses and to document conditions tied to disbursement and escrow instructions.

Why a Clear Sources and Uses Schedule Matters

A clear Sources and Uses Document reduces ambiguity by matching each dollar raised to a stated purpose, enabling stakeholders to confirm sufficiency and disbursement order. It streamlines underwriting, creates an auditable allocation trail for closing, and minimizes follow-up requests that delay funding and post-closing reconciliation.

Who Prepares and Relies on This Statement

Typical users who prepare or request this statement include finance teams, borrowers, lenders, and transaction advisors.

Private equity sponsors preparing acquisition financing schedules and capital structure presentations.
Commercial banks and lenders underwriting term loans and sizing funded amounts relative to use.
Borrowers, CFOs, and transaction advisers documenting working capital and escrow reserve requirements.

Use the document as a single-source reference for transaction funding assumptions, approval workflows, and audit trails.

Essential Sections to Include

A professional Business Sources Uses Document organizes capital sources, maps them to specific uses, and reconciles totals with closing funds, timing, and reserves to support funding decisions and audits.

Sources

List each committed funding source by type—equity, senior debt, mezzanine, seller note, grant—with committed amounts, funding conditions, and expected draw or availability schedules to verify funding reliability.

Uses

Itemize acquisition price, transaction fees, refinancing payoffs, capital expenditures, working capital needs, and contingency reserves; show the numerical basis and cite supporting invoices, payoff letters, or estimates.

Subtotal & Reconciliation

Present subtotals for sources and uses, include cash-on-hand adjustments and escrow deposits, and reconcile any gap or surplus to demonstrate that sources equal uses at closing.

Timing

Assign expected funding and disbursement dates, tranche sequencing, and conditions precedent for each source to align lender instructions and escrow release mechanics with project milestones.

Assumptions

Document key assumptions—interest rates, fees, exchange rates, and cost estimates—and include sensitivity ranges or footnotes explaining how numbers were calculated.

Supporting Schedules

Attach lender commitment letters, investor subscription exhibits, fee schedules, amortization tables, and vendor quotes so reviewers can validate amounts and timing quickly.

Four-Step Workflow to Complete and Share the Schedule

Use this four-step sequence to prepare, validate, and distribute the Sources and Uses Document so stakeholders can approve funding and release disbursements.

01

Gather inputs: Collect commitment letters, payoff amounts, and vendor quotes.
02

Draft schedule: Map each source to a specific use and compute totals.
03

Reconcile totals: Resolve mismatches, check formulas, and confirm rounding.
04

Approve & distribute: Obtain signatures and send final copies to lenders and escrow.

Digital Workflow Settings for Reliable Processing

Configure fields and integrations to support import, validation, signer order, and archival retention in your document platform.

Field	Configuration
Source field mapping	Allow spreadsheet import and template mapping for commit letters.
Amount field format	Currency USD, two decimals, automatic sum validation.
Conditional fields	Enable auto-calculation and flags for unmatched totals.
Signer roles	CFO, Treasurer, Lender representative, sequential order

Where to Send and How to Submit

After finalization, choose submission channels based on stakeholder roles, confidentiality needs, and whether notarization or escrow routing is required.

Email to lender: Send secure PDF to underwriting contacts with tracking.
Upload to data room: Place schedule in transaction VDR for diligence access.
Send for eSignature: Route to required signers in the proper signing order.
Deliver to escrow: Provide final, signed schedule to escrow agent for closing.

Digital Signing and Integration Requirements

Select a platform that supports PDF and DOCX imports, secure audit trails, and integrations with accounting and deal systems.

Supported Formats: PDF, DOCX, XLSX, CSV
Integrations: NetSuite, Salesforce, Microsoft 365, Google Workspace
Authentication: Email link, SMS code, SSO options

Penalties and Key Risks to Watch

Incorrect TIN: May trigger 24% backup withholding

Late Reporting: IRC §6721 penalties apply per form

Intentional Misstatement: $660+ per form, no cap

Funding Shortfall: Delayed closing or covenant breach risk

Notarization Omission: May void witness-dependent instruments

Data Privacy Exposure: HIPAA/CCPA penalties if PHI mishandled

Common Preparation Mistakes to Avoid

Mismatched totals caused by rounding or omitted fee lines lead to lender questions and funding delays; always reconcile at two-decimal precision.
Using informal labels or inconsistent category names makes aggregation error-prone; standardize category names across exhibits and commitment letters.
Failing to attach supporting payoff letters, fee schedules, or amortization tables increases review time and raises audit flags during closing.
Not documenting conditional funding items (subject to commitment letter) creates ambiguity about whether a source is committed or contingent.

Practical Examples from Real Transactions

These examples illustrate how a concise Sources and Uses Document clarifies funding, speeds lender review, and supports escrow disbursement instructions.

Optica Ventures (Brian Fitzgibbons)

Optica Ventures used the Business Sources Uses Document to standardize financing schedules across multiple deals and significantly reduce reconciliation time during diligence.

The team shared completed schedules with investors via secure eSignature links to obtain commitments quickly.
Brian Fitzgibbons, COO, notes that a simple, well-organized schedule improved customer experience and internal coordination, reduced follow-up questions, and provided a verifiable audit trail used for post-closing fund reconciliation and reporting.

Martin Properties (Tim Martin)

Martin Properties presented acquisition financing and reserve schedules to local lenders using the standardized statement to align draw conditions with renovation milestones.

The schedule tied lender conditions directly to the draw timetable and escrow releases.
Tim Martin, Founder, reports processing and executing the schedules online maintained compliance and speed, enabling on-time disbursements, clearer reserve calculations for each project phase, and fewer errors during funding closeouts.

Baseline eSignature Pricing and Feature Comparison

Compare common vendor starting prices and basic features relevant to executing and distributing a Business Sources Uses Document securely and compliantly.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by offer	Varies by offer	Varies by offer	Varies by offer
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Varies by plan
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA available)	Yes	Yes	No	No

Frequently Asked Questions

Answers to common legal, procedural, and technical questions about preparing and executing a Business Sources Uses Document.

Need help? Contact support

Is the document legally binding?
The schedule itself documents financial allocations but does not by itself create obligations unless incorporated by reference into binding agreements. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and retention requirements are met.
When is notarization required?
Notarization is generally not required for a Sources and Uses schedule alone, but certain related instruments (deeds, powers of attorney) may require notarization or witnesses under state law. Check the specific instrument and state notary rules before execution.
Can I use eSignature for this document?
Yes. Electronic signatures meet ESIGN and UETA requirements if they demonstrate signer intent, consent to electronic records, attribution, and durable record retention. For consumer-facing financial records include any required ESIGN consumer disclosure where applicable.
What if sources and uses do not match?
Do not finalize the schedule. Reconciling differences is required before closing; unresolved gaps may delay funding, trigger covenant defaults, or require bridge financing to cover shortfalls.
Who must sign the schedule?
Signatures typically include the borrower’s authorized officer(s), the investor or lender signatory where required, and any escrow or closing agent certification. Authority should be documented in corporate resolutions or subscription agreements.
How long should I retain signed copies?
Retain signed and final copies for at least three years to satisfy IRS baseline requirements (IRC §6501(a)); extend retention for industry-specific rules such as HIPAA (6 years) or where state law requires longer periods.

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