SBA 7(a) Q&A
Short answer
No, generally, gifts for equity injection must come from a family member. Gifts from non-family friends or associates are typically not permissible.
SBA policy specifies that gifts for equity injection must be from an immediate family member. Funds from non-family individuals or entities are generally not allowed, as they could be construed as investor funds requiring an equity stake or undisclosed debt, creating potential conflicts or repayment obligations.
A buyer's close friend offers a $50,000 gift to help with the equity injection for a business purchase. This $50,000 would typically not be accepted by the SBA as part of the equity injection because the donor is not an immediate family member.
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.
More on down payment & equity injection
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