{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-documentation-is-needed-to-verify-a-gift-from-a-family-member-for-my-100-000-equity-i","api_url":"https://dealroom.so/api/public/questions/what-documentation-is-needed-to-verify-a-gift-from-a-family-member-for-my-100-000-equity-i","question":"What documentation is needed to verify a gift from a family member for my $100,000 equity injection?","topic":"Gift funds","audience":"borrower","bot_mode":"buyer","short_answer":"You will need a signed gift letter from the family member, their bank statements showing fund availability, and proof of transfer to your account.","rule":"For gifted funds to be accepted as equity injection, the SBA requires specific documentation. This includes a gift letter from the donor stating the funds are an unconditional gift, evidence of the donor's financial ability to provide the gift (bank statements), and a clear trail showing the funds transferred to the borrower's account.","example":"For a $100,000 gift, your lender would require a letter from the donor (e.g., parent) confirming the gift, a copy of their bank statement showing the $100,000, and your bank statement showing the $100,000 deposited into your account before the business closing.","what_lenders_check":"Lenders must verify that gift funds are genuine, unencumbered, and truly unconditional, meaning no expectation of repayment. They meticulously trace the funds to prevent disguised loans that could compromise the borrower's equity position or cash flow.","required_facts":["Gift letter","Donor bank statements","Fund transfer proof","Unconditional gift","Family relationship"],"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":"Can a gift from my adult child count towards my required SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-gift-from-my-adult-child-count-towards-my-required-sba-7-a-equity-injection"}],"related_terms":[{"term":"Family member transaction","url":"https://dealroom.so/glossary/family-member-transaction"},{"term":"100% collateralization","url":"https://dealroom.so/glossary/100-collateralization"},{"term":"Gift","url":"https://dealroom.so/glossary/gift"},{"term":"Collateral documentation","url":"https://dealroom.so/glossary/collateral-documentation"},{"term":"Eligibility documentation","url":"https://dealroom.so/glossary/eligibility-documentation"},{"term":"Managing member","url":"https://dealroom.so/glossary/managing-member"}],"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-7a/questions/what-documentation-is-needed-to-verify-a-gift-from-a-family-member-for-my-100-000-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."]}