{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/can-money-gifted-from-a-family-member-be-used-for-my-sba-7-a-equity-injection","api_url":"https://dealroom.so/api/public/questions/can-money-gifted-from-a-family-member-be-used-for-my-sba-7-a-equity-injection","question":"Can money gifted from a family member be used for my SBA 7(a) equity injection?","topic":"Equity injection","audience":"new","bot_mode":"buyer","short_answer":"Yes, money gifted from a family member can generally be used for your SBA 7(a) equity injection, provided it meets specific documentation requirements.","rule":"Gifted funds must come from an immediate family member and be clearly documented with a gift letter stating that the funds are an irrevocable gift and do not need to be repaid. The funds must also be verifiable, showing they originated from the donor and were transferred to the borrower's account.","example":"A borrower's parent gifts them $50,000 for their business acquisition. The borrower provides a gift letter from the parent, bank statements showing the parent's withdrawal, and the borrower's deposit, confirming the funds are a non-repayable gift.","what_lenders_check":"Lenders verify the relationship between the donor and borrower, the source of the donor's funds, and ensure the gift is unconditional with no repayment expectation. Improperly documented or conditional gifts can jeopardize loan approval.","required_facts":["Gifted funds","Family member","Gift letter","No repayment","Source verification"],"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 I use funds from a second mortgage on my personal home for my equity injection?","url":"https://dealroom.so/sba-loans/basics/can-i-use-funds-from-a-second-mortgage-on-my-personal-home-for-my-equity-injection"},{"question":"Can I use funds from a personal line of credit for my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-loans/basics/can-i-use-funds-from-a-personal-line-of-credit-for-my-sba-7-a-equity-injection"},{"question":"Can I use funds from a business partner's personal savings for my equity injection?","url":"https://dealroom.so/sba-loans/basics/can-i-use-funds-from-a-business-partner-s-personal-savings-for-my-equity-injection"},{"question":"Is an equity injection always required when getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-an-equity-injection-always-required-when-getting-an-sba-7-a-loan"},{"question":"Can personal assets like a car or equipment I already own count toward my equity injection?","url":"https://dealroom.so/sba-loans/basics/can-personal-assets-like-a-car-or-equipment-i-already-own-count-toward-my-equity-injection"},{"question":"Can I use an unsecured personal loan from a family member for my equity injection on an SBA 7(a) acquisition?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-unsecured-personal-loan-from-a-family-member-for-my-equity-injection-on-an-sb"}],"related_terms":[{"term":"Family member transaction","url":"https://dealroom.so/glossary/family-member-transaction"},{"term":"Gifted Equity","url":"https://dealroom.so/glossary/gifted-equity"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"}],"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-money-gifted-from-a-family-member-be-used-for-my-sba-7-a-equity-injection","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."]}