SBA 7(a) Q&A
Short answer
Yes, inherited funds received prior to closing can count towards your equity injection, provided they are properly documented and traceable.
Inherited funds are considered an eligible source for equity injection as they are unencumbered and represent personal capital. The lender will require documentation such as probate court records, inheritance tax forms, and bank statements to verify the source and transfer of funds.
If you receive a $75,000 inheritance one month before your $1 million business acquisition closing, these funds can be used for your $100,000 equity injection. You'll provide the lender with documentation of the inheritance and bank statements showing the funds in your account.
Insider move
Lenders verify the legitimacy and clear title of inherited funds. They need to ensure the funds are truly yours, fully available, and not subject to any claims or contingencies that could affect their use as equity.
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 2026-06-13. 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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