SBA 7(a) Q&A
Short answer
A gift from a foreign relative can count as equity, but requires a gift letter, evidence of the donor's ability to give the funds, and proof of the transfer to your account.
Gifted funds are eligible for equity injection provided they are truly unconditional gifts and the source can be verified. The donor must sign a gift letter stating no repayment is expected, and the lender must trace the funds from the donor's account to the borrower's account. Proof of the donor's financial capacity may also be required.
A buyer receives a $50,000 gift from an aunt in Germany. The lender requires a notarized gift letter, bank statements from the aunt showing the funds, and the wire transfer confirmation to the buyer's U.S. bank account.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Procedural Notice 5000-876626 - Revised Applicant Ownership, Citizenship and Residency
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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