SBA 7(a) Q&A
Short answer
Yes, gift funds from a foreign relative can count towards your SBA 7(a) equity injection, provided they are properly documented and the funds are transferred to a U.S. account.
The SBA requires all equity injection funds, including gifts, to be verifiable, unencumbered, and from an acceptable source. For foreign gifts, lenders will require a gift letter, proof of funds from the donor's account, and documentation of the wire transfer into the borrower's U.S. bank account. Due diligence on the source of funds may be more extensive.
A buyer needs a $75,000 equity injection. Their relative in Canada gifts them $50,000. The buyer must provide a gift letter from the Canadian relative, bank statements from the relative showing the origin of funds, and a wire transfer confirmation showing the funds moving to the buyer's U.S. bank account.
Insider move
Lenders perform enhanced due diligence on foreign gift funds to ensure they are legitimate, unencumbered, and not proceeds from illegal activities. They verify compliance with anti-money laundering (AML) regulations and require clear documentation of the transfer.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. 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 gift/investor funds
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