{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-documentation-is-needed-if-my-equity-injection-comes-from-a-personal-gift","api_url":"https://dealroom.so/api/public/questions/what-documentation-is-needed-if-my-equity-injection-comes-from-a-personal-gift","question":"What documentation is needed if my equity injection comes from a personal gift?","topic":"Down payment & Equity injection","audience":"new","bot_mode":"buyer","short_answer":"If your equity injection is from a personal gift, you'll need a signed gift letter from the donor and bank statements verifying the transfer of funds to your account.","rule":"The gift letter must explicitly state that the funds are a gift, not a loan, with no expectation of repayment, and include the donor's name, address, relationship to borrower, and the amount. Documentation of the fund transfer is also required to show it's unencumbered.","example":"If your parents gift you $50,000 for your down payment, you'd provide a letter signed by them stating it's a gift, along with bank statements showing the $50,000 moving from their account to yours.","what_lenders_check":"Lenders meticulously verify the source of gifted funds to ensure they are legitimate and truly unencumbered, confirming there is no hidden repayment obligation that would reduce the borrower's true equity in the business.","required_facts":["Gift Letter","No Repayment","Donor Identity","Bank Statements","Fund Transfer","Unencumbered Funds"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","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":"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":"Is my equity injection (down payment) always required to be cash?","url":"https://dealroom.so/sba-loans/basics/is-my-equity-injection-down-payment-always-required-to-be-cash"},{"question":"Can a credit card cash advance be used for my down payment?","url":"https://dealroom.so/sba-loans/basics/can-a-credit-card-cash-advance-be-used-for-my-down-payment"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-equity-injection"},{"term":"Equity injection verification","url":"https://dealroom.so/glossary/equity-injection-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-loans/basics/what-documentation-is-needed-if-my-equity-injection-comes-from-a-personal-gift","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."]}