For SBA lenders
Short answer
For a gift from a non-immediate family member, the lender must obtain a gift letter, bank statements from both the donor and borrower showing the transfer, and proof the donor has sufficient funds, ensuring the gift is truly unencumbered.
SBA allows gifts as equity injection, provided they are genuine and unencumbered. For gifts from non-immediate family (or any third party), lenders must conduct enhanced due diligence. This includes a signed gift letter stating no repayment is expected, documentation of the donor's source of funds, and clear bank statements showing the transfer from the donor to the borrower's account, ensuring the funds are clean and irrevocably gifted.
A borrower receives a $25,000 gift from an aunt for equity injection. The lender requests a gift letter from the aunt, her bank statement showing the $25,000 withdrawal, and the borrower's bank statement showing the $25,000 deposit, verifying the source and transfer of the unencumbered funds.
Insider move
Lenders are concerned about hidden repayment obligations or the gift actually being a loan that would undermine the borrower's equity. Thorough documentation is essential to confirm the gift's bona fide nature and the donor's capacity to give.
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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