SBA 7(a) Q&A
Short answer
Yes, an investor can provide funds that count as equity injection for an SBA 7(a) loan, even if they are not an owner, provided the funds are an unconditional gift with no expectation of repayment.
SBA policy allows for gifted funds from any source, including unrelated investors, to count as equity injection. The key requirement is that these funds must be an irrevocable gift, with no conditions for repayment or any hidden ownership interest or control conveyed to the investor. A formal gift letter is essential.
An investor could provide $100,000 as an irrevocable gift to you for your business acquisition. A gift letter would state this, and the funds would be transferred to your personal account before being injected into the business, without the investor becoming a business owner.
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.
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