For SBA lenders
Short answer
Yes, a gift from a non-affiliated business entity can count as equity injection, provided the lender verifies it is an unconditional gift with no repayment obligation or lien on business assets.
The SBA permits gifted funds to count as equity injection if they are truly unconditional and do not represent a debt that would burden the business or the borrower. The lender must obtain documentation proving the gift is from a legitimate source and is not subject to repayment or any other terms that would undermine the equity position.
A borrower receives a $50,000 gift from an unrelated corporation owned by a close friend, with no expectation of repayment or future ownership. The lender requires a formal gift letter, evidence of the donor's financial capacity, and verification of the transfer to the borrower's account to count this towards equity.
Insider move
Lenders must ensure the gift is genuine and unconditional, not a disguised loan, and does not create an ineligible affiliation or undue influence on the borrower, which could jeopardize the equity injection requirement.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on equity injection verification
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day