{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-funds-gifted-from-a-distant-relative-like-an-aunt-or-uncle-count-towards-my-equity-inj","api_url":"https://dealroom.so/api/public/questions/can-funds-gifted-from-a-distant-relative-like-an-aunt-or-uncle-count-towards-my-equity-inj","question":"Can funds gifted from a distant relative, like an aunt or uncle, count towards my equity injection?","topic":"Gift/investor funds","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, funds gifted from a distant relative can count towards your equity injection, provided the gift is clearly documented, unencumbered, and the donor has no ownership interest in the business.","rule":"SBA allows gift funds from individuals, provided the gift is unconditional, requires no repayment, and the donor has no equity stake in the borrower's business. A gift letter from the donor and verification of the transfer of funds are typically required.","example":"If your aunt gifts you $50,000 for your business down payment, you'll need a signed gift letter from her stating it's a gift with no repayment expectation, along with bank statements showing the transfer.","what_lenders_check":"Lenders need to verify the legitimacy of the gift, ensuring it's not a disguised loan and that the donor has no present or future claim on the business. They will require a formal gift letter and often bank statements from both the donor and recipient.","required_facts":["Gifted funds","Distant relative","No repayment","No ownership stake","Documentation"],"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 corporate entity, not an individual, provide a gift that counts towards my equity injection for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/can-a-corporate-entity-not-an-individual-provide-a-gift-that-counts-towards-my-equity-inje"},{"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"}],"related_terms":[{"term":"Gifted funds","url":"https://dealroom.so/glossary/gifted-funds"},{"term":"Gifted Equity","url":"https://dealroom.so/glossary/gifted-equity"},{"term":"Indemnification from the Seller","url":"https://dealroom.so/glossary/indemnification-from-the-seller"},{"term":"Debarred from federal programs","url":"https://dealroom.so/glossary/debarred-from-federal-programs"},{"term":"Equity","url":"https://dealroom.so/glossary/equity"},{"term":"Personal Funds","url":"https://dealroom.so/glossary/personal-funds"}],"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-from-a-distant-relative-like-an-aunt-or-uncle-count-towards-my-equity-inj","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."]}