Glossary · People and paperwork
In short
A formal document from a third party stating that funds provided to the borrower are a gift, with no expectation of repayment. This is typically used to document a portion of the equity injection for an SBA loan.
If you receive funds from family or friends to meet your equity injection requirement, the SBA requires a gift letter. This letter must explicitly state the funds are a true gift with no repayment obligation, from any source, and no lien will be placed on the business. The lender will verify the source of these funds.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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