SBA 7(a) Q&A
Short answer
Yes, a gift from a family member can be used for your SBA 7(a) down payment, provided it meets specific documentation and eligibility requirements.
Gifted funds are acceptable as equity injection if the donor is a family member, the gift is unconditional, and it is documented with a gift letter stating no repayment is expected. The donor must also verify the source of their funds.
A buyer needs a $100,000 down payment and receives a $50,000 gift from their parents, accompanied by a gift letter and bank statements from the parents.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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.
More on gift/investor funds
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day