SBA 7(a) Q&A
Short answer
The SBA verifies a cash gift from an unrelated investor through a formal gift letter and tracing the funds to ensure they are unencumbered and transferred to the borrower.
Lenders are required to obtain a gift letter signed by the donor, explicitly stating that the funds are an irrevocable gift, with no expectation of repayment or future claim on the business. The lender must then verify the transfer of these funds into the borrower's account and ensure they remain unencumbered for the equity injection.
For a $75,000 gift, the lender would require a gift letter from the investor, bank statements from the investor showing the funds' origin, and bank statements from your account showing the $75,000 deposit and its continued presence until the loan closing.
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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