A friend (I swear. Really. It's not me!) is trying to get an SBA loan to buy a business. His bank tells him that he needs to have a six figure bank account so the SBA thinks he has resources to run the business and pay the loan. His bank further suggested that if he could get someone to loan him that money for a few months, he could deposit in the bank for a few months to "season" it. If it's there for three months, the SBA will assume that's good enough. Now he's looking for someone to somehow let him pretend some of their money is his money for a few months.

This is obviously a terrible idea, but I'd like to know more about why this is a terrible idea.

What I've come up with so far:

The lender faces risks of not getting the money back. Maybe an unexpected lawsuit or divorce of the debtor. Some other default.

The SBA isn't as dumb as the bank thinks they are and this will result in fraud charges for both parties.

Unexpected tax implications. Obviously any "interest" that the lender receives would be taxable, but maybe non-financial professionals who don't know what they're doing would do it wrong and trigger a giant tax bill?

Ending up on some anti-terrorism or money laundering watchlist for moving that kind of money between unrelated people.

I don't know. Please give me good arguments for why no one should do this.