SBA 7(a) Q&A
Short answer
You will need a gift letter from your parents stating the funds are a true gift, not a loan, and verifying the source of their funds.
SBA requires gift funds used for equity injection to be unconditional and not subject to repayment. The gift letter must clearly state this, and lenders will verify the donor's ability to provide the funds.
For a $750,000 business acquisition requiring $75,000 in equity, your parents would provide a signed gift letter stating the $75,000 is an unconditional gift. The lender would also request their bank statements to trace the origin of the gifted amount.
Lenders scrutinize gift funds to ensure they are legitimate and do not conceal additional, undeclared debt that could impact the borrower's repayment ability. Source and intent are key.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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