{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/are-gifted-funds-from-family-members-allowed-for-the-down-payment-on-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/are-gifted-funds-from-family-members-allowed-for-the-down-payment-on-an-sba-7-a-loan","question":"Are gifted funds from family members allowed for the down payment on an SBA 7(a) loan?","topic":"Down payment & equity injection","audience":"new","bot_mode":"buyer","short_answer":"Yes, gifted funds from immediate family members can be used as part of the equity injection (down payment) for an SBA 7(a) loan, provided certain conditions are met.","rule":"The gift must be unconditional, meaning the family member providing the gift cannot have any expectation of repayment, nor can they receive any ownership interest in the business in exchange for the gift. The gift must also be properly documented, including a gift letter and proof of funds transfer.","example":"A borrower receives a $50,000 gift from their parents to contribute to a business acquisition. They provide a signed gift letter from their parents stating no repayment is expected, along with bank statements showing the funds transfer, which is accepted as part of their equity injection.","what_lenders_check":"Lenders require clear documentation, including a gift letter, to confirm the funds are a true gift with no repayment obligation or hidden interest. They also verify the source of the gifted funds to prevent fraud or money laundering.","required_facts":["Gifted funds allowed","Immediate family","Unconditional gift","No repayment expected","Documentation required","Gift letter"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-loans/basics/can-i-use-retirement-funds-from-a-401-k-as-equity-injection-for-a-750-000-business-purchas"},{"question":"Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?","url":"https://dealroom.so/sba-loans/basics/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-as-my-equity-injection-for-a-bus"},{"question":"Is it possible to use a second mortgage on my personal residence as an equity injection for a $1.5 million business acquisition?","url":"https://dealroom.so/sba-loans/basics/is-it-possible-to-use-a-second-mortgage-on-my-personal-residence-as-an-equity-injection-fo"},{"question":"How much cash must I personally inject for an SBA 7(a) business acquisition?","url":"https://dealroom.so/sba-loans/basics/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition"},{"question":"What are the acceptable sources for my cash equity injection beyond personal savings?","url":"https://dealroom.so/sba-loans/basics/what-are-the-acceptable-sources-for-my-cash-equity-injection-beyond-personal-savings"},{"question":"What is the SBA's minimum required equity injection percentage for a business acquisition?","url":"https://dealroom.so/sba-loans/basics/what-is-the-sba-s-minimum-required-equity-injection-percentage-for-a-business-acquisition"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Immediate Family Members","url":"https://dealroom.so/glossary/immediate-family-members"},{"term":"Gifted funds","url":"https://dealroom.so/glossary/gifted-funds"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"Aggregate SBA 7(a) Loan Eligibility","url":"https://dealroom.so/glossary/aggregate-sba-7-a-loan-eligibility"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/are-gifted-funds-from-family-members-allowed-for-the-down-payment-on-an-sba-7-a-loan","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}