SBA 7(a) Q&A
Short answer
No, gift funds must generally come from immediate family members, with no expectation of repayment, to count towards your equity injection.
SBA policy specifies that gift funds for equity injection must be from immediate family members and documented with a gift letter confirming no repayment is expected. Funds from unrelated investors are treated as capital contributions if they gain ownership or debt if they do not.
If a close friend, not an immediate family member, offers to gift $25,000 for your $500,000 business purchase down payment, these funds would generally not qualify as gift equity unless the friend takes an ownership stake.
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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