{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-an-inheritance-received-shortly-before-closing-as-part-of-my-equity-i","api_url":"https://dealroom.so/api/public/questions/can-i-use-funds-from-an-inheritance-received-shortly-before-closing-as-part-of-my-equity-i","question":"Can I use funds from an inheritance received shortly before closing as part of my equity injection?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, funds from an inheritance received shortly before closing can count towards your equity injection, provided the source is clearly documented.","rule":"Inherited funds are considered part of a borrower's unencumbered cash and are an eligible source for equity injection. The lender will require documentation such as a copy of the will, probate documents, or a letter from the estate executor, along with bank statements showing the receipt of funds by the buyer and their deposit into a verified account.","example":"A buyer receives a $100,000 inheritance two months before closing on a business acquisition. With proper documentation of the inheritance and bank statements showing the funds' deposit, this $100,000 can be used as part of their required equity.","what_lenders_check":"Lenders verify the legitimacy of the inheritance to ensure it's not a disguised loan or subject to other claims. They require a clear paper trail from the estate to the borrower's account to confirm the funds are unencumbered and available for the injection.","required_facts":["Inherited funds","Source documentation","Unencumbered cash","Funds traceability"],"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":"Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/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-7a/questions/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-7a/questions/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-7a/questions/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-7a/questions/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-7a/questions/what-is-the-sba-s-minimum-required-equity-injection-percentage-for-a-business-acquisition"}],"related_terms":[{"term":"Use of funds","url":"https://dealroom.so/glossary/use-of-funds"},{"term":"Eligible Use of Funds","url":"https://dealroom.so/glossary/eligible-use-of-funds"},{"term":"Inheritance","url":"https://dealroom.so/glossary/inheritance"},{"term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"term":"Uses of Funds","url":"https://dealroom.so/glossary/uses-of-funds"},{"term":"Commingling of Funds","url":"https://dealroom.so/glossary/commingling-of-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":"2026-06-13","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-i-use-funds-from-an-inheritance-received-shortly-before-closing-as-part-of-my-equity-i","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."]}