{"ok":true,"canonical_url":"https://dealroom.so/glossary/irrevocable-gift","api_url":"https://dealroom.so/api/public/glossary/irrevocable-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":"irrevocable-gift","term":"Irrevocable gift","group":"Your money in the deal","definition":"This is a cash gift from a third party (like a family member) that is permanently given to the borrower for their equity injection. The giver cannot expect repayment or any benefit.","what_it_means":"If you're using gifted funds for your down payment, the SBA requires a signed gift letter stating the funds are an irrevocable gift, with no expectation of repayment. The funds must be seasoned in your account before closing. This avoids disguised debt that would reduce your true equity.","url":"https://dealroom.so/glossary/irrevocable-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":"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":"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 — Irrevocable gift","url":"https://dealroom.so/glossary/irrevocable-gift","source_type":"DealRoom Data"}}