{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/can-i-use-a-gift-from-a-family-member-as-part-of-my-down-payment-for-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/can-i-use-a-gift-from-a-family-member-as-part-of-my-down-payment-for-an-sba-7-a-loan","question":"Can I use a gift from a family member as part of my down payment for an SBA 7(a) loan?","topic":"Down payment & equity injection","audience":"new","bot_mode":"buyer","short_answer":"Yes, funds received as a gift from a family member can be used for your SBA 7(a) loan down payment, provided the gift is truly unconditional and properly documented.","rule":"The SBA allows gifted funds to count as equity injection if the donor is not repaid and has no ownership interest in the business. A gift letter from the donor stating these conditions and proof of fund transfer are typically required.","example":"An aspiring business owner receives a $50,000 gift from their parents to help with a $100,000 down payment on a $1 million business acquisition. The parents must provide a gift letter confirming it's a non-repayable, unconditional gift with no expectation of ownership.","what_lenders_check":"Lenders verify that the gift is legitimate and meets all SBA requirements. They check for any hidden conditions, such as repayment expectations or future equity claims, which would disqualify the funds from counting as true equity.","required_facts":["Family gift","Unconditional","No repayment","No ownership","Documentation"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","SBA Form 1919 - Borrower Information Form"],"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":"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"}],"related_questions":[{"question":"Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-loans/basics/can-i-use-retirement-funds-from-a-401-k-as-equity-injection-for-a-750-000-business-purchas"},{"question":"Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?","url":"https://dealroom.so/sba-loans/basics/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-as-my-equity-injection-for-a-bus"},{"question":"Is it possible to use a second mortgage on my personal residence as an equity injection for a $1.5 million business acquisition?","url":"https://dealroom.so/sba-loans/basics/is-it-possible-to-use-a-second-mortgage-on-my-personal-residence-as-an-equity-injection-fo"},{"question":"How much cash must I personally inject for an SBA 7(a) business acquisition?","url":"https://dealroom.so/sba-loans/basics/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition"},{"question":"What are the acceptable sources for my cash equity injection beyond personal savings?","url":"https://dealroom.so/sba-loans/basics/what-are-the-acceptable-sources-for-my-cash-equity-injection-beyond-personal-savings"},{"question":"What is the SBA's minimum required equity injection percentage for a business acquisition?","url":"https://dealroom.so/sba-loans/basics/what-is-the-sba-s-minimum-required-equity-injection-percentage-for-a-business-acquisition"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Family member transaction","url":"https://dealroom.so/glossary/family-member-transaction"},{"term":"Demand for Payment","url":"https://dealroom.so/glossary/demand-for-payment"},{"term":"Form I-551","url":"https://dealroom.so/glossary/form-i-551"},{"term":"Use of funds","url":"https://dealroom.so/glossary/use-of-funds"},{"term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"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-loans/basics/can-i-use-a-gift-from-a-family-member-as-part-of-my-down-payment-for-an-sba-7-a-loan","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."]}