{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-from-a-gift-from-a-non-family-me","api_url":"https://dealroom.so/api/public/questions/what-documentation-is-required-to-verify-equity-injection-from-a-gift-from-a-non-family-me","question":"What documentation is required to verify equity injection from a gift from a non-family member?","topic":"Equity injection verification","audience":"lender","bot_mode":"lender","short_answer":"Gifted equity from a non-family member is generally not permitted unless the gift is clearly unconditional, documented by a gift letter, and verifiable through bank statements showing the donor's capacity to give and the recipient's deposit.","rule":"SBA policy on gifted equity primarily recognizes gifts from family members who have no interest in the business. Gifts from non-family members are highly scrutinized and generally disallowed as a source of equity injection, as they may be disguised loans or raise questions of eligibility or undue influence. If a non-family gift is permitted under very specific circumstances, it must be fully documented as unconditional and irrevocable, with clear proof of funds from the donor.","example":"A borrower attempts to use $20,000 gifted from a friend for their equity injection. The lender, citing SBA policy, informs the borrower that a gift from a non-family member is generally not acceptable for equity injection.","what_lenders_check":"Lenders must strictly adhere to SBA rules regarding the source of equity injection. Accepting a gift from a non-family member as equity could jeopardize the SBA guaranty, as it violates the intent of ensuring the borrower has genuine, unencumbered investment in the business.","required_facts":["Non-family gift","Unconditional gift","Proof of funds","SBA eligibility rules"],"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":"What documentation verifies funds for equity injection transferred from a personal investment account?","url":"https://dealroom.so/for-lenders/questions/what-documentation-verifies-funds-for-equity-injection-transferred-from-a-personal-investm"},{"question":"How does a lender verify equity injection funds that are a cash gift from a non-family third party?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-a-cash-gift-from-a-non-family-thi"},{"question":"Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-investment-in-a-certificate-of-deposit-cd-count-towards-the-required-equi"},{"question":"What specific documentation is required to verify equity injection funds originating from a borrower's existing business assets, such as equipment or inventory?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-to-verify-equity-injection-funds-originating-from-"},{"question":"How does a lender verify the source of gifted equity injection funds when the donor is a foreign national?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-of-gifted-equity-injection-funds-when-the-donor-is-a-f"},{"question":"How does a lender verify equity injection funds that are sourced from a personal line of credit secured by non-personal real estate?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-that-are-sourced-from-a-personal-line-of-c"}],"related_terms":[{"term":"Family member transaction","url":"https://dealroom.so/glossary/family-member-transaction"},{"term":"Non-Cash Equity Injection","url":"https://dealroom.so/glossary/non-cash-equity-injection"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Immediate Family Members","url":"https://dealroom.so/glossary/immediate-family-members"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-from-a-gift-from-a-non-family-me","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."]}