{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-a-gift-from-a-non-family-member-that-is-intended-for-the-equity-i","api_url":"https://dealroom.so/api/public/questions/how-does-a-lender-verify-a-gift-from-a-non-family-member-that-is-intended-for-the-equity-i","question":"How does a lender verify a gift from a non-family member that is intended for the equity injection in a 7(a) loan?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Verifying a gift from a non-family member requires a formal gift letter, evidence the donor has sufficient funds, and verification the funds were transferred to the borrower without expectation of repayment.","rule":"While gifts from family members are more common, gifts from non-family members are also allowed for equity injection. The lender must obtain a signed gift letter from the donor stating the funds are a gift, not a loan, and have no repayment expectation. The lender must also verify the donor's source of funds and the direct transfer of funds to the borrower's account, ensuring the gift is legitimate and unencumbered.","example":"A borrower receives a $20,000 gift from a close friend for their equity injection. The lender requires a notarized gift letter from the friend, bank statements showing the friend's available funds, and a copy of the wire transfer showing the funds moved directly into the borrower's personal account, ensuring clear documentation of the gift.","what_lenders_check":"Lenders must be diligent in verifying gifts to ensure they are genuine and not disguised loans, which would undermine the equity injection requirement. Strict documentation of the gift letter, donor's capacity, and fund transfer is essential.","required_facts":["Gift letter","Donor identity","Donor's source of funds","Fund transfer verification","No repayment expectation"],"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":"What documentation verifies funds for equity injection transferred from a personal investment account?","url":"https://dealroom.so/for-lenders/questions/what-documentation-verifies-funds-for-equity-injection-transferred-from-a-personal-investm"},{"question":"How does a lender verify equity injection funds that are a cash gift from a non-family third party?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-a-cash-gift-from-a-non-family-thi"},{"question":"Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-investment-in-a-certificate-of-deposit-cd-count-towards-the-required-equi"},{"question":"What specific documentation is required to verify equity injection funds originating from a borrower's existing business assets, such as equipment or inventory?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-equity-injection-funds-originating-from-"},{"question":"How does a lender verify the source of gifted equity injection funds when the donor is a foreign national?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-of-gifted-equity-injection-funds-when-the-donor-is-a-f"},{"question":"How does a lender verify equity injection funds that are sourced from a personal line of credit secured by non-personal real estate?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-sourced-from-a-personal-line-of-c"}],"related_terms":[{"term":"Family member transaction","url":"https://dealroom.so/glossary/family-member-transaction"},{"term":"Non-PLP lender","url":"https://dealroom.so/glossary/non-plp-lender"},{"term":"Non-Delegated Lender","url":"https://dealroom.so/glossary/non-delegated-lender"},{"term":"Gift","url":"https://dealroom.so/glossary/gift"},{"term":"Managing member","url":"https://dealroom.so/glossary/managing-member"},{"term":"Lender's Application for Guaranty","url":"https://dealroom.so/glossary/lender-s-application-for-guaranty"}],"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/for-lenders/questions/how-does-a-lender-verify-a-gift-from-a-non-family-member-that-is-intended-for-the-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."]}