{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/can-an-inheritance-received-after-loan-application-but-before-closing-count-towards-equity","api_url":"https://dealroom.so/api/public/questions/can-an-inheritance-received-after-loan-application-but-before-closing-count-towards-equity","question":"Can an inheritance received after loan application but before closing count towards equity injection?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Yes, an inheritance received after loan application but before closing can count towards equity injection, provided proper documentation verifies the source and availability of funds.","rule":"SBA rules allow for various sources of equity injection, including gifts and inheritances. The critical factor is that the funds are unencumbered and clearly documented as belonging to the borrower and available for the project. Lenders must verify the inheritance through official estate documents and bank statements.","example":"A borrower applies for a $500,000 acquisition loan, needing a $100,000 equity injection. Two months into processing, the borrower receives a $150,000 inheritance. The lender will require a copy of the will/trust, a letter from the estate executor, and bank statements showing receipt of the funds to accept this as equity.","what_lenders_check":"The lender's primary concern is verifying the legal transfer and clear ownership of the inherited funds. They need to ensure the funds are genuinely available and not subject to claims or repayment obligations that would undermine the equity position.","required_facts":["Source of funds","Inheritance documents","Bank statements","Unencumbered funds","Timing of receipt"],"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":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Inheritance","url":"https://dealroom.so/glossary/inheritance"},{"term":"Loan Application","url":"https://dealroom.so/glossary/loan-application"},{"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"}],"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-inheritance-received-after-loan-application-but-before-closing-count-towards-equity","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."]}