For SBA lenders
Short answer
Funds gifted from a non-immediate family member are generally not considered eligible equity injection unless the donor is a principal of the business or an unrelated third party providing an investment, which must be fully documented and meet specific criteria.
SBA policy states that gifted funds for equity injection must come from an immediate family member (parent, spouse, child, sibling) without expectation of repayment. Gifts from other individuals or entities are scrutinized and typically not eligible unless structured as an investment from a principal or third-party investor under specific non-debt terms.
A borrower receives a $50,000 "gift" from a close friend for their equity injection on a $100,000 required injection. The lender would likely deem this ineligible unless the friend becomes an equity owner in the business with proper documentation, or the funds are demonstrably from the borrower's own verified sources.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
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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