{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/can-an-equity-injection-come-from-a-gift-provided-by-a-non-affiliated-business-entity-and-","api_url":"https://dealroom.so/api/public/questions/can-an-equity-injection-come-from-a-gift-provided-by-a-non-affiliated-business-entity-and-","question":"Can an equity injection come from a gift provided by a non-affiliated business entity, and how is it verified?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Yes, a gift from a non-affiliated business entity can count as equity injection, provided the lender verifies it is an unconditional gift with no repayment obligation or lien on business assets.","rule":"The SBA permits gifted funds to count as equity injection if they are truly unconditional and do not represent a debt that would burden the business or the borrower. The lender must obtain documentation proving the gift is from a legitimate source and is not subject to repayment or any other terms that would undermine the equity position.","example":"A borrower receives a $50,000 gift from an unrelated corporation owned by a close friend, with no expectation of repayment or future ownership. The lender requires a formal gift letter, evidence of the donor's financial capacity, and verification of the transfer to the borrower's account to count this towards equity.","what_lenders_check":"Lenders must ensure the gift is genuine and unconditional, not a disguised loan, and does not create an ineligible affiliation or undue influence on the borrower, which could jeopardize the equity injection requirement.","required_facts":["Gifted equity","Business entity donor","Unconditional gift","Verification","Repayment obligation"],"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":"What documentation verifies funds for equity injection transferred from a personal investment account?","url":"https://dealroom.so/for-lenders/questions/what-documentation-verifies-funds-for-equity-injection-transferred-from-a-personal-investm"},{"question":"How does a lender verify equity injection funds that are a cash gift from a non-family third party?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-a-cash-gift-from-a-non-family-thi"},{"question":"Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-investment-in-a-certificate-of-deposit-cd-count-towards-the-required-equi"},{"question":"What specific documentation is required to verify equity injection funds originating from a borrower's existing business assets, such as equipment or inventory?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-equity-injection-funds-originating-from-"},{"question":"How does a lender verify the source of gifted equity injection funds when the donor is a foreign national?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-of-gifted-equity-injection-funds-when-the-donor-is-a-f"},{"question":"How does a lender verify equity injection funds that are sourced from a personal line of credit secured by non-personal real estate?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-sourced-from-a-personal-line-of-c"}],"related_terms":[{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Affiliated Business","url":"https://dealroom.so/glossary/affiliated-business"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Business Entity","url":"https://dealroom.so/glossary/business-entity"},{"term":"Non-profit entity","url":"https://dealroom.so/glossary/non-profit-entity"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"}],"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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/can-an-equity-injection-come-from-a-gift-provided-by-a-non-affiliated-business-entity-and-","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."]}