SBA 7(a) Q&A
Short answer
Yes, funds gifted from a distant relative can count towards your equity injection, provided the gift is clearly documented, unencumbered, and the donor has no ownership interest in the business.
SBA allows gift funds from individuals, provided the gift is unconditional, requires no repayment, and the donor has no equity stake in the borrower's business. A gift letter from the donor and verification of the transfer of funds are typically required.
If your aunt gifts you $50,000 for your business down payment, you'll need a signed gift letter from her stating it's a gift with no repayment expectation, along with bank statements showing the transfer.
Insider move
Lenders need to verify the legitimacy of the gift, ensuring it's not a disguised loan and that the donor has no present or future claim on the business. They will require a formal gift letter and often bank statements from both the donor and recipient.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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