For SBA lenders
Short answer
Verifying gifted funds from a foreign family member requires a gift letter, proof of fund transfer from the donor's foreign account to the borrower's U.S. account, and potentially documentation of the donor's source of funds.
Gifted funds are an acceptable source for equity injection, but verification is critical, especially for foreign gifts. The lender must obtain a signed gift letter stating the funds are a gift with no repayment expected. Evidence of the funds originating from the donor's account and being transferred to the borrower's account is essential to demonstrate an unencumbered source.
A borrower receives a $50,000 gift from a parent residing in Canada. The lender would require a gift letter from the parent, bank statements from the parent's Canadian account showing the funds and transfer, and the borrower's U.S. bank statements showing receipt of the funds, all dated appropriately.
Insider move
Lenders must verify that gift funds are genuinely gifts and not disguised loans, especially with foreign sources where tracing funds can be more complex. Insufficient documentation or inability to confirm the unencumbered nature of the funds can jeopardize the guaranty.
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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