For SBA lenders
Short answer
Lenders verify gifts by obtaining a gift letter from the donor stating the funds are an unconditional gift with no repayment expected, along with bank statements showing the donor's withdrawal and the borrower's deposit.
For a gift to qualify as equity injection, the lender must document that the funds are truly a gift, not a disguised loan. This includes a signed gift letter from the donor and verification of the transfer of funds from the donor's account to the borrower's business or personal account.
A buyer receives a $50,000 gift from a parent for a business acquisition. The lender requires a letter from the parent stating it's a gift with no repayment obligation, along with copies of the parent's bank statement showing the $50,000 withdrawal and the buyer's bank statement showing the corresponding deposit.
Insider move
The primary concern is preventing circumvention of equity requirements with disguised loans. Lenders must ensure clear documentation of the gift's source, transfer, and unconditional nature.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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