{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-a-corporate-entity-not-an-individual-provide-a-gift-that-counts-towards-my-equity-inje","api_url":"https://dealroom.so/api/public/questions/can-a-corporate-entity-not-an-individual-provide-a-gift-that-counts-towards-my-equity-inje","question":"Can a corporate entity, not an individual, provide a gift that counts towards my equity injection for an SBA loan?","topic":"Gift/investor funds","audience":"borrower","bot_mode":"buyer","short_answer":"No, gifts for equity injection must come from an individual (a close family member), not a corporate entity, to be recognized by the SBA.","rule":"SBA policy on gifted funds for equity injection specifically refers to gifts from 'close family members' (individuals). A gift from a corporate entity, even if related to the borrower, does not fit this definition and would not be accepted as valid equity injection. The SBA's intention is to ensure that equity comes from the borrower's personal resources or a direct, unconditional personal gift.","example":"A buyer needs $80,000 equity for a business purchase. Their existing holding company attempts to 'gift' $80,000 to the buyer for the equity injection. This would be deemed ineligible by the lender.","what_lenders_check":"Lenders must trace the source of gifted funds to verify they are from an eligible individual and not a corporate entity, to comply with SBA equity injection rules and avoid potential affiliation or control issues.","required_facts":["Corporate gift","Individual donor","Close family member","Ineligible source","Equity injection"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"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"}],"related_questions":[{"question":"How can a gift from a close family member contribute to my equity injection for a $600,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/how-can-a-gift-from-a-close-family-member-contribute-to-my-equity-injection-for-a-600-000-"},{"question":"If my parents gift me $50,000 for a down payment, what specific documentation is required by the SBA?","url":"https://dealroom.so/sba-7a/questions/if-my-parents-gift-me-50-000-for-a-down-payment-what-specific-documentation-is-required-by"},{"question":"Can a gift from a non-family investor count towards my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-gift-from-a-non-family-investor-count-towards-my-sba-7-a-equity-injection"},{"question":"Can a non-profit organization provide a grant that counts towards my equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-non-profit-organization-provide-a-grant-that-counts-towards-my-equity-injection-for-"},{"question":"Can a gift from a non-family friend for $50,000 be used for my equity injection on an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-gift-from-a-non-family-friend-for-50-000-be-used-for-my-equity-injection-on-an-sba-7"},{"question":"How does the SBA verify a $75,000 cash gift from an unrelated investor for my equity injection?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-a-75-000-cash-gift-from-an-unrelated-investor-for-my-equity-inject"}],"related_terms":[{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-equity-injection"},{"term":"Equity injection verification","url":"https://dealroom.so/glossary/equity-injection-verification"},{"term":"Principal (Individual)","url":"https://dealroom.so/glossary/principal-individual"}],"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-7a/questions/can-a-corporate-entity-not-an-individual-provide-a-gift-that-counts-towards-my-equity-inje","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."]}