{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-gift-funds-from-a-foreign-relative-count-towards-my-sba-7-a-equity-injection-if-proper","api_url":"https://dealroom.so/api/public/questions/can-gift-funds-from-a-foreign-relative-count-towards-my-sba-7-a-equity-injection-if-proper","question":"Can gift funds from a foreign relative count towards my SBA 7(a) equity injection if properly documented?","topic":"Gift/Investor funds","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, gift funds from a foreign relative can count towards your SBA 7(a) equity injection, provided they are properly documented and the funds are transferred to a U.S. account.","rule":"The SBA requires all equity injection funds, including gifts, to be verifiable, unencumbered, and from an acceptable source. For foreign gifts, lenders will require a gift letter, proof of funds from the donor's account, and documentation of the wire transfer into the borrower's U.S. bank account. Due diligence on the source of funds may be more extensive.","example":"A buyer needs a $75,000 equity injection. Their relative in Canada gifts them $50,000. The buyer must provide a gift letter from the Canadian relative, bank statements from the relative showing the origin of funds, and a wire transfer confirmation showing the funds moving to the buyer's U.S. bank account.","what_lenders_check":"Lenders perform enhanced due diligence on foreign gift funds to ensure they are legitimate, unencumbered, and not proceeds from illegal activities. They verify compliance with anti-money laundering (AML) regulations and require clear documentation of the transfer.","required_facts":["Gift funds","Foreign relative","Proper documentation","U.S. account transfer","AML compliance"],"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 specific documentation is required for a cash gift from an immediate family member for my equity injection?","url":"https://dealroom.so/sba-7a/questions/what-specific-documentation-is-required-for-a-cash-gift-from-an-immediate-family-member-fo"},{"question":"Can a loan from a non-owner friend count towards the equity injection if it has favorable terms?","url":"https://dealroom.so/sba-7a/questions/can-a-loan-from-a-non-owner-friend-count-towards-the-equity-injection-if-it-has-favorable-"},{"question":"Can a subordinated loan from a private third-party investor count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-subordinated-loan-from-a-private-third-party-investor-count-as-equity-injection-for-"}],"related_terms":[{"term":"Foreign-Sourced Equity Injection","url":"https://dealroom.so/glossary/foreign-sourced-equity-injection"},{"term":"Gift funds","url":"https://dealroom.so/glossary/gift-funds"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"}],"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/sba-7a/questions/can-gift-funds-from-a-foreign-relative-count-towards-my-sba-7-a-equity-injection-if-proper","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."]}