{"ok":true,"canonical_url":"https://dealroom.so/glossary/gift-funds","api_url":"https://dealroom.so/api/public/glossary/gift-funds","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":"gift-funds","term":"Gift funds","group":"Your money in the deal","definition":"Money given to a buyer by an eligible donor (usually a close relative) to be used as part of their equity injection in an SBA loan. It reduces the cash you need to bring to the table yourself.","what_it_means":"The SBA allows gift funds for the equity injection, but they must be \"unconditional\" and from an eligible source. The donor must sign a gift letter stating no repayment is expected. Lenders will verify the source of these funds, so track the money from the donor's account to yours.","url":"https://dealroom.so/glossary/gift-funds","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":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"}],"related_questions":[{"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":"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":"Can gift funds from a non-U.S. citizen parent be used for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-gift-funds-from-a-non-u-s-citizen-parent-be-used-for-my-equity-injection"},{"question":"Can I use gift funds from family members for my SBA 7(a) loan down payment?","url":"https://dealroom.so/sba-loans/basics/can-i-use-gift-funds-from-family-members-for-my-sba-7-a-loan-down-payment"},{"question":"What if the gift funds for my down payment are from a distant relative or friend?","url":"https://dealroom.so/sba-7a/questions/what-if-the-gift-funds-for-my-down-payment-are-from-a-distant-relative-or-friend"},{"question":"Can gift funds from a non-U.S. relative count towards my SBA 7(a) down payment?","url":"https://dealroom.so/sba-loans/basics/can-gift-funds-from-a-non-u-s-relative-count-towards-my-sba-7-a-down-payment"}]},"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 — Gift funds","url":"https://dealroom.so/glossary/gift-funds","source_type":"DealRoom Data"}}