{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-i-use-gifted-funds-from-a-non-relative-for-my-down-payment","api_url":"https://dealroom.so/api/public/questions/can-i-use-gifted-funds-from-a-non-relative-for-my-down-payment","question":"Can I use gifted funds from a non-relative for my down payment?","topic":"Gift/Investor Funds","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, gifted funds from a non-relative can count as equity injection if properly documented, the donor is not benefiting from the transaction, and it's a true gift with no repayment expectation.","rule":"The SBA requires gifts used for equity injection to be unconditional and not subject to repayment. A gift letter from the donor stating the funds are a gift with no repayment terms is essential. The lender must verify the source of the gifted funds and ensure the donor is not an associate or otherwise benefiting from the loan proceeds.","example":"A close friend gifts you $25,000 for your business acquisition. You would need a signed gift letter from them, and the lender would verify the funds originated from your friend's account and were transferred to your business account, with no expectation of repayment.","what_lenders_check":"Lenders must verify the legitimacy of the gift, ensuring it's not a disguised loan or a way to circumvent equity requirements. They scrutinize the relationship between the borrower and donor, especially for non-family members, to avoid potential conflicts of interest.","required_facts":["Gift letter required","No repayment expectation","Donor not associate","Verifiable source of funds"],"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":"Can a private investor provide a loan that counts as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-private-investor-provide-a-loan-that-counts-as-equity-injection-for-an-sba-7-a-loan"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Gifted funds","url":"https://dealroom.so/glossary/gifted-funds"},{"term":"Gift funds","url":"https://dealroom.so/glossary/gift-funds"},{"term":"Use of funds","url":"https://dealroom.so/glossary/use-of-funds"},{"term":"Non-Owner Investor","url":"https://dealroom.so/glossary/non-owner-investor"},{"term":"Demand for Payment","url":"https://dealroom.so/glossary/demand-for-payment"}],"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-i-use-gifted-funds-from-a-non-relative-for-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."]}