SBA 7(a) Q&A
Short answer
You will need a gift letter from your parents stating the funds are a true gift with no expectation of repayment, along with bank statements showing the funds originated from their account and were transferred to yours.
For gift funds to qualify as equity injection, the SBA requires that the gift is from an immediate family member and is truly unencumbered. A formal gift letter, signed by the donor, and bank statements tracking the funds from the donor to the borrower are mandatory.
If your parents gift you $50,000, they would provide a signed letter confirming it's a gift. You'd also show their bank statement reflecting the withdrawal and your bank statement showing the deposit, demonstrating the clean transfer.
Lenders must ensure gift funds are legitimate and do not represent a disguised loan, which would violate standby requirements. They verify the source, relationship to the borrower, and the absence of any repayment obligation.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. 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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