{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/can-i-use-gifted-funds-from-my-parents-for-the-down-payment-on-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/can-i-use-gifted-funds-from-my-parents-for-the-down-payment-on-an-sba-7-a-loan","question":"Can I use gifted funds from my parents for the down payment on an SBA 7(a) loan?","topic":"Down Payment & Equity","audience":"new","bot_mode":"buyer","short_answer":"Yes, gifted funds from immediate family members, such as parents, can be used for the equity injection (down payment) for an SBA 7(a) loan, provided it is a true gift with no expectation of repayment.","rule":"The SBA allows gifted funds for equity injection if the gift is from an immediate family member, properly documented with a gift letter, and there is no repayment obligation. The gift must be freely given and not sourced from a party with an interest in the loan (like the seller).","example":"A new business owner, Emily, needs a $50,000 equity injection. Her parents provide her with $50,000 as a gift. With a formal gift letter stating no repayment is expected, these funds can be accepted as Emily's equity injection for her SBA 7(a) loan.","what_lenders_check":"Lenders require a formal gift letter, review the donor's financial statements to verify the source of funds, and ensure there are no liens or repayment conditions attached to the gift, complying with SBA policy.","required_facts":["Gifted funds","Immediate family","Gift letter","No repayment","Source of funds"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility","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":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"},{"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":"What is the typical cash down payment required for an SBA 7(a) business acquisition?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-cash-down-payment-required-for-an-sba-7-a-business-acquisition"},{"question":"Can personal savings be used as a down payment for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-personal-savings-be-used-as-a-down-payment-for-an-sba-7-a-loan"},{"question":"What is the typical down payment percentage required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-down-payment-percentage-required-for-an-sba-7-a-loan"},{"question":"Can I use a personal loan from a relative for my equity injection?","url":"https://dealroom.so/sba-loans/basics/can-i-use-a-personal-loan-from-a-relative-for-my-equity-injection"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Gifted funds","url":"https://dealroom.so/glossary/gifted-funds"},{"term":"Claim on the SBA Guarantee","url":"https://dealroom.so/glossary/claim-on-the-sba-guarantee"},{"term":"Use of funds","url":"https://dealroom.so/glossary/use-of-funds"},{"term":"Indemnification from the Seller","url":"https://dealroom.so/glossary/indemnification-from-the-seller"},{"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":"2026-06-13","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-gifted-funds-from-my-parents-for-the-down-payment-on-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."]}