{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-documentation-is-required-if-a-gift-for-equity-injection-comes-from-an-entity-not-an-","api_url":"https://dealroom.so/api/public/questions/what-documentation-is-required-if-a-gift-for-equity-injection-comes-from-an-entity-not-an-","question":"What documentation is required if a gift for equity injection comes from an entity, not an individual?","topic":"Gift & Investor Funds","audience":"borrower","bot_mode":"buyer","short_answer":"If a gift for equity injection comes from an entity, comprehensive documentation is required, including the entity's financial statements and proof of its legal ability to make the gift.","rule":"When an entity (e.g., a corporation, LLC) provides a gift for equity injection, the lender needs to verify the entity's financial health, the legitimacy of its funds, and that the gift is authorized by its governing documents. This includes corporate resolutions, financial statements, and a detailed gift letter from the entity, similar to individual gift requirements but with an added layer of corporate governance review.","example":"If a company you previously worked for wants to gift your new business $30,000 towards your equity, the lender would require their corporate resolution authorizing the gift, financial statements for the gifting entity, and a detailed gift letter signed by an authorized officer, along with bank statements showing the transfer.","what_lenders_check":"Lenders need to ensure the entity providing the gift is legitimate and that the gift does not create any hidden liabilities or conflicts of interest for the borrower or the acquired business. They verify the financial capacity and legal authority of the gifting entity.","required_facts":["Entity gift","Corporate resolution","Financial statements","Gift documentation","Legal authority"],"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":"Can funds gifted by a non-family investor contribute to my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-gifted-by-a-non-family-investor-contribute-to-my-equity-injection"},{"question":"Are funds from a non-U.S. citizen or non-resident investor acceptable for equity injection?","url":"https://dealroom.so/sba-7a/questions/are-funds-from-a-non-u-s-citizen-or-non-resident-investor-acceptable-for-equity-injection"}],"related_terms":[{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"For-profit entity","url":"https://dealroom.so/glossary/for-profit-entity"},{"term":"Not-for-Profit Business","url":"https://dealroom.so/glossary/not-for-profit-business"},{"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"}],"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/what-documentation-is-required-if-a-gift-for-equity-injection-comes-from-an-entity-not-an-","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."]}