{"ok":true,"canonical_url":"https://dealroom.so/glossary/gift-letter","api_url":"https://dealroom.so/api/public/glossary/gift-letter","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-letter","term":"Gift letter","group":"People and paperwork","definition":"A formal document from a third party stating that funds provided to the borrower are a gift, with no expectation of repayment. This is typically used to document a portion of the equity injection for an SBA loan.","what_it_means":"If you receive funds from family or friends to meet your equity injection requirement, the SBA requires a gift letter. This letter must explicitly state the funds are a true gift with no repayment obligation, from any source, and no lien will be placed on the business. The lender will verify the source of these funds.","url":"https://dealroom.so/glossary/gift-letter","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"disguised-debt","term":"Disguised debt","url":"https://dealroom.so/glossary/disguised-debt"}],"related_questions":[{"question":"Does a gift letter need to be from a U.S. citizen or permanent resident for equity injection?","url":"https://dealroom.so/sba-7a/questions/does-a-gift-letter-need-to-be-from-a-u-s-citizen-or-permanent-resident-for-equity-injectio"},{"question":"Are there specific requirements for a gift letter if funds are received from multiple immediate family members for the down payment?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-requirements-for-a-gift-letter-if-funds-are-received-from-multiple-imme"},{"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"}]},"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 letter","url":"https://dealroom.so/glossary/gift-letter","source_type":"DealRoom Data"}}