SBA 7(a) Q&A
Short answer
Yes, a gift from a non-family friend can be used for your equity injection, provided it meets specific SBA requirements for documentation and unencumbered status.
SBA policy allows gifts from any source, including non-family members, to count as equity injection. The gift must be properly documented with a gift letter stating it is an irrevocable gift with no expectation of repayment, and the funds must be verified as having been transferred to the borrower and unencumbered.
If a non-family friend gifts you $50,000 for your equity injection, you would need to provide a signed gift letter from them, along with bank statements showing the funds were transferred to your account, and are now fully yours without any repayment obligation.
Insider move
Lenders meticulously verify the gift to ensure it is truly unencumbered and not a disguised loan. The gift letter must be clear, irrevocable, and the funds' transfer must be traceable to the borrower's account.
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
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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
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