For SBA lenders
Short answer
Yes, an inheritance received after loan application but before closing can count towards equity injection, provided proper documentation verifies the source and availability of funds.
SBA rules allow for various sources of equity injection, including gifts and inheritances. The critical factor is that the funds are unencumbered and clearly documented as belonging to the borrower and available for the project. Lenders must verify the inheritance through official estate documents and bank statements.
A borrower applies for a $500,000 acquisition loan, needing a $100,000 equity injection. Two months into processing, the borrower receives a $150,000 inheritance. The lender will require a copy of the will/trust, a letter from the estate executor, and bank statements showing receipt of the funds to accept this as equity.
Insider move
The lender's primary concern is verifying the legal transfer and clear ownership of the inherited funds. They need to ensure the funds are genuinely available and not subject to claims or repayment obligations that would undermine the equity position.
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.
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