SBA 7(a) Q&A
Short answer
Yes, for a non-family gift donor, the SBA typically requires that the gift is truly unconditional, with no expectation of repayment or future benefit, and is properly documented.
While gifts from family members are explicitly allowed, gifts from non-family individuals are scrutinized more closely. The donor cannot be an owner or employee of the business being acquired, nor can they be affiliated with the seller. The gift must be genuinely unconditional, without any direct or indirect ties to the business operation or profits.
If a long-time mentor who is not involved in the business provides a $25,000 gift for your equity injection, this could be permissible if fully documented as an unconditional gift. However, if that mentor expects a future share of profits or a board seat, it would not qualify.
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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