{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-a-family-member-gifts-me-funds-for-my-down-payment-are-they-required-to-sign-a-personal","api_url":"https://dealroom.so/api/public/questions/if-a-family-member-gifts-me-funds-for-my-down-payment-are-they-required-to-sign-a-personal","question":"If a family member gifts me funds for my down payment, are they required to sign a personal guaranty?","topic":"Gift/investor funds","audience":"borrower","bot_mode":"buyer","short_answer":"No, a family member who gifts funds for your down payment is generally not required to sign a personal guaranty for the SBA 7(a) loan.","rule":"SBA rules require personal guaranties from owners with 20% or more equity in the business, and other key individuals at the lender's discretion. A family member providing a gift is typically not an owner and has no direct financial interest requiring a guaranty, provided the gift is truly irrevocable and without expectation of repayment.","example":"A buyer's parents gift them $50,000 for a down payment on a $500,000 business. The parents sign a gift letter confirming no ownership or repayment expectation. They would not be required to sign a personal guaranty for the $450,000 SBA loan.","what_lenders_check":"Lenders verify the gift through a formal gift letter stating no expectation of repayment or ownership interest. They ensure the donor's financial capacity to make the gift and that the gift is not a disguised loan.","required_facts":["Gift funds","Family donor","No ownership","No repayment","Gift letter","Personal guaranty"],"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":"How can a gift from a close family member contribute to my equity injection for a $600,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/how-can-a-gift-from-a-close-family-member-contribute-to-my-equity-injection-for-a-600-000-"},{"question":"If my parents gift me $50,000 for a down payment, what specific documentation is required by the SBA?","url":"https://dealroom.so/sba-7a/questions/if-my-parents-gift-me-50-000-for-a-down-payment-what-specific-documentation-is-required-by"},{"question":"Can a corporate entity, not an individual, provide a gift that counts towards my equity injection for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/can-a-corporate-entity-not-an-individual-provide-a-gift-that-counts-towards-my-equity-inje"},{"question":"Can a gift from a non-family investor count towards my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-gift-from-a-non-family-investor-count-towards-my-sba-7-a-equity-injection"},{"question":"Can a non-profit organization provide a grant that counts towards my equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-non-profit-organization-provide-a-grant-that-counts-towards-my-equity-injection-for-"},{"question":"Can a gift from a non-family friend for $50,000 be used for my equity injection on an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-gift-from-a-non-family-friend-for-50-000-be-used-for-my-equity-injection-on-an-sba-7"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Family member transaction","url":"https://dealroom.so/glossary/family-member-transaction"},{"term":"Demand for Payment","url":"https://dealroom.so/glossary/demand-for-payment"},{"term":"Required guarantor","url":"https://dealroom.so/glossary/required-guarantor"},{"term":"Managing member","url":"https://dealroom.so/glossary/managing-member"},{"term":"Required Lien Position","url":"https://dealroom.so/glossary/required-lien-position"}],"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/if-a-family-member-gifts-me-funds-for-my-down-payment-are-they-required-to-sign-a-personal","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."]}