{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-happens-if-i-receive-a-large-inheritance-just-before-my-loan-closing","api_url":"https://dealroom.so/api/public/questions/what-happens-if-i-receive-a-large-inheritance-just-before-my-loan-closing","question":"What happens if I receive a large inheritance just before my loan closing?","topic":"Equity Injection","audience":"new","bot_mode":"buyer","short_answer":"An inheritance can be used for your equity injection, but the lender will require documentation to verify the funds' source and ensure they are unencumbered.","rule":"Funds from an inheritance are considered eligible for the equity injection, provided they are properly documented and verified. The lender will need to see proof of the inheritance (e.g., probate documents, bank statements showing receipt of funds) and confirm that these funds are unencumbered (not borrowed or subject to repayment). This ensures the capital genuinely represents the borrower's independent contribution.","example":"Sarah receives a $100,000 inheritance one month before her business acquisition loan closing. She provides the lender with bank statements showing the funds deposited and probate documents, allowing her to use this for her required 10% equity injection.","what_lenders_check":"Lenders need to ensure the source of funds for the equity injection is legitimate and unencumbered. An inheritance, while acceptable, requires clear paper trails to prevent any appearance of borrowed funds or other ineligible sources.","required_facts":["Inheritance eligible","Document source","Verify unencumbered","Bank statements, probate"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"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":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"What documentation is needed to verify cash equity injection from a business's operating account prior to the 7(a) loan closing?","url":"https://dealroom.so/sba-loans/basics/what-documentation-is-needed-to-verify-cash-equity-injection-from-a-business-s-operating-a"},{"question":"How does the SBA typically view a borrower's investment of an existing personal vehicle as equity injection for an acquisition?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-typically-view-a-borrower-s-investment-of-an-existing-personal-vehicle-as"},{"question":"Can funds from an investor who will own less than 20% of the business count towards my equity injection?","url":"https://dealroom.so/sba-loans/basics/can-funds-from-an-investor-who-will-own-less-than-20-of-the-business-count-towards-my-equi"},{"question":"Can I use an equity injection from another company I own for the down payment?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-equity-injection-from-another-company-i-own-for-the-down-payment"},{"question":"Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-funds-from-a-private-equity-firm-count-as-equity-injection-for-an-sba-7-a-loan"},{"question":"What documentation is needed to verify equity injection from funds held in a foreign bank account?","url":"https://dealroom.so/sba-loans/basics/what-documentation-is-needed-to-verify-equity-injection-from-funds-held-in-a-foreign-bank-"}],"related_terms":[{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Inheritance","url":"https://dealroom.so/glossary/inheritance"},{"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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/what-happens-if-i-receive-a-large-inheritance-just-before-my-loan-closing","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."]}