SBA 7(a) Q&A
Short answer
Yes, gifted funds from family members are permissible for an SBA 7(a) equity injection, provided they are truly a gift with no expectation of repayment and are properly documented.
The SBA allows gifts from family members to count as equity injection if the donor signs a gift letter explicitly stating the funds are a gift, no repayment is expected, and the donor has no ownership interest or control in the business. The funds must be transferred to the borrower's account.
A buyer needs a $50,000 down payment. Their parent gifts them $40,000, and the buyer contributes $10,000 from savings. With a signed gift letter, the $40,000 qualifies.
Insider move
Lenders verify the gift letter's authenticity, ensure the funds have been properly transferred, and confirm there are no hidden repayment terms or undue influence from the donor.
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.
More on gift/investor funds
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day