{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-funds-gifted-by-a-non-family-investor-contribute-to-my-equity-injection","api_url":"https://dealroom.so/api/public/questions/can-funds-gifted-by-a-non-family-investor-contribute-to-my-equity-injection","question":"Can funds gifted by a non-family investor contribute to my equity injection?","topic":"Gift & Investor Funds","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, funds gifted by a non-family investor can contribute to your equity injection, provided they meet specific SBA requirements for gifts.","rule":"Gifts are generally acceptable for equity injection if properly documented with a gift letter stating no repayment is expected. For gifts from non-family investors, the SBA and lenders will typically scrutinize the relationship and intent more closely to ensure there is no hidden expectation of repayment or future equity claim, which could constitute a loan instead of equity.","example":"If you receive a $25,000 gift from a mentor for your $100,000 equity injection, a formal gift letter from the mentor, along with bank statements showing the transfer, will be required. The letter must explicitly state no repayment is expected.","what_lenders_check":"Lenders are concerned about the true nature of the funds, ensuring they are genuine gifts with no repayment obligation or hidden equity interest. They verify the source and intent to prevent circumvention of equity requirements or undisclosed liabilities.","required_facts":["Non-family investor","Gift letter","No repayment expected","Equity injection source","Documentation"],"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":"Are funds from a non-U.S. citizen or non-resident investor acceptable for equity injection?","url":"https://dealroom.so/sba-7a/questions/are-funds-from-a-non-u-s-citizen-or-non-resident-investor-acceptable-for-equity-injection"},{"question":"What documentation is required if a gift for equity injection comes from an entity, not an individual?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-required-if-a-gift-for-equity-injection-comes-from-an-entity-not-an-"}],"related_terms":[{"term":"Gifted funds","url":"https://dealroom.so/glossary/gifted-funds"},{"term":"Gifted Equity","url":"https://dealroom.so/glossary/gifted-equity"},{"term":"Gift funds","url":"https://dealroom.so/glossary/gift-funds"},{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Non-Owner Investor","url":"https://dealroom.so/glossary/non-owner-investor"}],"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-funds-gifted-by-a-non-family-investor-contribute-to-my-equity-injection","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."]}