SBA 7(a) Q&A
Short answer
Yes, funds from an inheritance received shortly before closing can count towards your equity injection, provided the source is clearly documented.
Inherited funds are considered part of a borrower's unencumbered cash and are an eligible source for equity injection. The lender will require documentation such as a copy of the will, probate documents, or a letter from the estate executor, along with bank statements showing the receipt of funds by the buyer and their deposit into a verified account.
A buyer receives a $100,000 inheritance two months before closing on a business acquisition. With proper documentation of the inheritance and bank statements showing the funds' deposit, this $100,000 can be used as part of their required equity.
Lenders verify the legitimacy of the inheritance to ensure it's not a disguised loan or subject to other claims. They require a clear paper trail from the estate to the borrower's account to confirm the funds are unencumbered and available for the injection.
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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