SBA 7(a) Q&A
Short answer
A gift from a friend for your equity injection generally needs to be an unconditional gift, with a gift letter and verification of the friend's source of funds.
Similar to family gifts, a gift from a non-relative for equity injection must be fully unconditional with no expectation of repayment. The lender will require a gift letter confirming this, and may ask for documentation to verify the friend's ability to make the gift.
If a friend gifts you $25,000 for your $250,000 business acquisition, they would need to sign a gift letter explicitly stating it's a gift with no repayment. The lender might also request bank statements from your friend to confirm the funds' origin.
Insider move
Lenders exercise caution with gifts from non-relatives to ensure they are true gifts and not disguised loans that could create additional undisclosed debt and impact the borrower's repayment ability.
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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