SBA 7(a) Q&A
Short answer
Yes, a gift from an adult child can count towards your equity injection, but it must be an unconditional gift and properly documented.
Gifted funds from immediate family members are acceptable for equity injection, provided there's a signed gift letter stating the funds are an unconditional gift, with no repayment expected, and the donor has sufficient liquid assets to support the gift.
If your mother gifts you $50,000 for your $100,000 down payment, your lender will need a gift letter from her and bank statements showing she has those funds and the transfer to your account.
Lenders scrutinize gift funds to ensure they are truly unconditional and do not represent a disguised loan. They will verify the donor's ability to provide the gift and track the funds from the donor's account to the borrower's account, then into the business.
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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