{"ok":true,"canonical_url":"https://dealroom.so/glossary/gifted-funds","api_url":"https://dealroom.so/api/public/glossary/gifted-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":"gifted-funds","term":"Gifted funds","group":"Your money in the deal","definition":"Money given to you by an immediate family member without expectation of repayment, used as part of your equity injection for an SBA loan. This helps you meet the required down payment.","what_it_means":"Gifted funds are an acceptable source for your equity injection, but they must be \"unencumbered,\" meaning the giver can't expect to be repaid. The SBA requires a specific gift letter and proof of funds from the donor. Ensure the funds are transferred directly to your account before closing.","url":"https://dealroom.so/glossary/gifted-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"},{"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":"gift-letter","term":"Gift letter","url":"https://dealroom.so/glossary/gift-letter"},{"slug":"unencumbered","term":"Unencumbered","url":"https://dealroom.so/glossary/unencumbered"}],"related_questions":[{"question":"What are the rules for using gifted family funds as equity?","url":"https://dealroom.so/sba-7a/questions/what-are-the-rules-for-using-gifted-family-funds-as-equity"},{"question":"What specific documentation is required if my equity injection includes gifted funds?","url":"https://dealroom.so/sba-7a/questions/what-specific-documentation-is-required-if-my-equity-injection-includes-gifted-funds"},{"question":"Can funds gifted by a non-family investor contribute to my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-gifted-by-a-non-family-investor-contribute-to-my-equity-injection"},{"question":"Can I use gifted funds from a non-relative for my down payment?","url":"https://dealroom.so/sba-7a/questions/can-i-use-gifted-funds-from-a-non-relative-for-my-down-payment"},{"question":"Can gifted funds be used for the down payment on a 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-gifted-funds-be-used-for-the-down-payment-on-a-7-a-loan"},{"question":"How does the SBA 7(a) loan process verify the source of gifted equity injection funds?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-7-a-loan-process-verify-the-source-of-gifted-equity-injection-funds"}]},"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 — Gifted funds","url":"https://dealroom.so/glossary/gifted-funds","source_type":"DealRoom Data"}}