{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-gift-funds-from-a-non-family-investor-count-towards-my-down-payment","api_url":"https://dealroom.so/api/public/questions/can-gift-funds-from-a-non-family-investor-count-towards-my-down-payment","question":"Can gift funds from a non-family investor count towards my down payment?","topic":"Gift/investor funds","audience":"borrower","bot_mode":"buyer","short_answer":"No, gift funds must generally come from immediate family members, with no expectation of repayment, to count towards your equity injection.","rule":"SBA policy specifies that gift funds for equity injection must be from immediate family members and documented with a gift letter confirming no repayment is expected. Funds from unrelated investors are treated as capital contributions if they gain ownership or debt if they do not.","example":"If a close friend, not an immediate family member, offers to gift $25,000 for your $500,000 business purchase down payment, these funds would generally not qualify as gift equity unless the friend takes an ownership stake.","what_lenders_check":"Lenders verify the relationship between the donor and borrower and scrutinize gift letters to ensure no implicit repayment obligations exist that could impact the borrower's capacity to repay the SBA loan.","required_facts":[],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","SBA Form 1919 - Borrower Information Form","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":"SBA Form 1919 - Borrower Information Form","url":"https://www.sba.gov/sites/default/files/2025-03/2025.02.27%20Form%201919%20-%20Updates%20%28FINAL%29_03-12-2025%20%281%29.pdf"},{"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":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Gift funds","url":"https://dealroom.so/glossary/gift-funds"},{"term":"Non-Owner Investor","url":"https://dealroom.so/glossary/non-owner-investor"},{"term":"Non-Payment Clause","url":"https://dealroom.so/glossary/non-payment-clause"},{"term":"Non-Compete Payment","url":"https://dealroom.so/glossary/non-compete-payment"},{"term":"Investor","url":"https://dealroom.so/glossary/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":"2026-06-13","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-non-family-investor-count-towards-my-down-payment","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."]}