{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-i-receive-a-gift-from-a-foreign-relative-for-my-down-payment-what-specific-verification","api_url":"https://dealroom.so/api/public/questions/if-i-receive-a-gift-from-a-foreign-relative-for-my-down-payment-what-specific-verification","question":"If I receive a gift from a foreign relative for my down payment, what specific verification is needed?","topic":"Down payment & equity injection","audience":"borrower","bot_mode":"buyer","short_answer":"A gift from a foreign relative can count as equity, but requires a gift letter, evidence of the donor's ability to give the funds, and proof of the transfer to your account.","rule":"Gifted funds are eligible for equity injection provided they are truly unconditional gifts and the source can be verified. The donor must sign a gift letter stating no repayment is expected, and the lender must trace the funds from the donor's account to the borrower's account. Proof of the donor's financial capacity may also be required.","example":"A buyer receives a $50,000 gift from an aunt in Germany. The lender requires a notarized gift letter, bank statements from the aunt showing the funds, and the wire transfer confirmation to the buyer's U.S. bank account.","what_lenders_check":"Lenders will be diligent in verifying the legitimacy and source of foreign gifted funds due to increased scrutiny on money laundering and illicit financing. They ensure the gift is truly unencumbered and not a disguised loan.","required_facts":["Gift letter","Foreign relative","Donor's bank statements","Proof of transfer","Unconditional gift"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","Procedural Notice 5000-876626 - Revised Applicant Ownership, Citizenship and Residency"],"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":"Procedural Notice 5000-876626 - Revised Applicant Ownership, Citizenship and Residency","url":"https://www.sba.gov/sites/default/files/2026-02/Procedural%20Notice%205000-876626%20-%20Revised%20Applicant%20Ownership%20Citizenship%20and%20Residency%20%20OFA%202.11.pdf"}],"related_questions":[{"question":"Can I use retirement funds from a 401(k) as equity injection for a $750,000 business purchase?","url":"https://dealroom.so/sba-7a/questions/can-i-use-retirement-funds-from-a-401-k-as-equity-injection-for-a-750-000-business-purchas"},{"question":"Can funds from a home equity line of credit (HELOC) be used as my equity injection for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-heloc-be-used-as-my-equity-injection-for-a-bus"},{"question":"Is it possible to use a second mortgage on my personal residence as an equity injection for a $1.5 million business acquisition?","url":"https://dealroom.so/sba-7a/questions/is-it-possible-to-use-a-second-mortgage-on-my-personal-residence-as-an-equity-injection-fo"},{"question":"How much cash must I personally inject for an SBA 7(a) business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-much-cash-must-i-personally-inject-for-an-sba-7-a-business-acquisition"},{"question":"What are the acceptable sources for my cash equity injection beyond personal savings?","url":"https://dealroom.so/sba-7a/questions/what-are-the-acceptable-sources-for-my-cash-equity-injection-beyond-personal-savings"},{"question":"What is the SBA's minimum required equity injection percentage for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-s-minimum-required-equity-injection-percentage-for-a-business-acquisition"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Demand for Payment","url":"https://dealroom.so/glossary/demand-for-payment"},{"term":"Gift","url":"https://dealroom.so/glossary/gift"},{"term":"Foreign national","url":"https://dealroom.so/glossary/foreign-national"},{"term":"Specific Lien","url":"https://dealroom.so/glossary/specific-lien"},{"term":"Residency Verification","url":"https://dealroom.so/glossary/residency-verification"}],"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-i-receive-a-gift-from-a-foreign-relative-for-my-down-payment-what-specific-verification","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."]}