{"ok":true,"canonical_url":"https://dealroom.so/glossary/genuine-gift","api_url":"https://dealroom.so/api/public/glossary/genuine-gift","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"genuine-gift","term":"Genuine gift","group":"Your money in the deal","definition":"This is money given to the buyer for their equity injection that does not need to be repaid. The SBA allows gifts from immediate family, but they must be truly unconditional.","what_it_means":"A genuine gift requires a gift letter from the donor, stating no repayment is expected and no lien will be placed on the business. The funds must be transferred to your account before closing and meet seasoning of funds requirements, just like your own money.","url":"https://dealroom.so/glossary/genuine-gift","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"gift-letter","term":"Gift letter","url":"https://dealroom.so/glossary/gift-letter"},{"slug":"seasoning-of-funds","term":"Seasoning of Funds","url":"https://dealroom.so/glossary/seasoning-of-funds"},{"slug":"familial-relationship","term":"Familial relationship","url":"https://dealroom.so/glossary/familial-relationship"}],"related_questions":[{"question":"How does a lender verify a gift used for equity injection?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-a-gift-used-for-equity-injection"},{"question":"What specific documentation is required for gift funds used for an equity injection?","url":"https://dealroom.so/sba-7a/questions/what-specific-documentation-is-required-for-gift-funds-used-for-an-equity-injection"},{"question":"What documentation is needed if my equity injection comes from a personal gift?","url":"https://dealroom.so/sba-loans/basics/what-documentation-is-needed-if-my-equity-injection-comes-from-a-personal-gift"},{"question":"Can a family gift count for my SBA 7(a) loan down payment?","url":"https://dealroom.so/sba-loans/basics/can-a-family-gift-count-for-my-sba-7-a-loan-down-payment"},{"question":"Can gift funds from a non-family investor count towards my down payment?","url":"https://dealroom.so/sba-7a/questions/can-gift-funds-from-a-non-family-investor-count-towards-my-down-payment"},{"question":"If my parents gift me $75,000 for a down payment, what documentation is required?","url":"https://dealroom.so/sba-7a/questions/if-my-parents-gift-me-75-000-for-a-down-payment-what-documentation-is-required"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Genuine gift","url":"https://dealroom.so/glossary/genuine-gift","source_type":"DealRoom Data"}}