{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-specific-documentation-is-required-for-a-cash-gift-from-an-immediate-family-member-fo","api_url":"https://dealroom.so/api/public/questions/what-specific-documentation-is-required-for-a-cash-gift-from-an-immediate-family-member-fo","question":"What specific documentation is required for a cash gift from an immediate family member for my equity injection?","topic":"Gift/Investor funds","audience":"borrower","bot_mode":"buyer","short_answer":"For a gift from an immediate family member to count as equity, specific documentation is required, including a gift letter, proof of fund transfer, and verification of the donor's source of funds.","rule":"The lender needs a signed gift letter from the donor stating the funds are a true gift (no repayment expected), the amount, and that the donor has no ownership interest in the business. The lender will also require bank statements from the donor showing the funds in their account for at least two months prior to the gift, and bank statements from the borrower showing receipt of the funds. This verifies the legitimacy and unencumbered nature of the gift.","example":"Your mother gifts you $50,000 for your down payment. You'll need a signed gift letter from her, bank statements proving she had the $50,000, and your bank statements showing the $50,000 deposited and cleared.","what_lenders_check":"Lenders must confirm the gift is genuine and not a disguised loan, which would violate the 'at risk' equity requirement. They verify the donor's ability to give the funds and the clear transfer to the borrower.","required_facts":["Gift letter","Donor's bank statements","Borrower's bank statements","Proof of transfer","No repayment expected","No ownership interest"],"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":"Can a loan from a non-owner friend count towards the equity injection if it has favorable terms?","url":"https://dealroom.so/sba-7a/questions/can-a-loan-from-a-non-owner-friend-count-towards-the-equity-injection-if-it-has-favorable-"},{"question":"Can a subordinated loan from a private third-party investor count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-subordinated-loan-from-a-private-third-party-investor-count-as-equity-injection-for-"},{"question":"Can gift funds from a foreign relative count towards my SBA 7(a) equity injection if properly documented?","url":"https://dealroom.so/sba-7a/questions/can-gift-funds-from-a-foreign-relative-count-towards-my-sba-7-a-equity-injection-if-proper"}],"related_terms":[{"term":"Immediate Family Members","url":"https://dealroom.so/glossary/immediate-family-members"},{"term":"Family member transaction","url":"https://dealroom.so/glossary/family-member-transaction"},{"term":"Cash Gift","url":"https://dealroom.so/glossary/cash-gift"},{"term":"Gift","url":"https://dealroom.so/glossary/gift"},{"term":"Collateral documentation","url":"https://dealroom.so/glossary/collateral-documentation"},{"term":"Required guarantor","url":"https://dealroom.so/glossary/required-guarantor"}],"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-specific-documentation-is-required-for-a-cash-gift-from-an-immediate-family-member-fo","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."]}