SBA 7(a) Q&A
Short answer
You will need a signed gift letter from the family member, their bank statements showing fund availability, and proof of transfer to your account.
For gifted funds to be accepted as equity injection, the SBA requires specific documentation. This includes a gift letter from the donor stating the funds are an unconditional gift, evidence of the donor's financial ability to provide the gift (bank statements), and a clear trail showing the funds transferred to the borrower's account.
For a $100,000 gift, your lender would require a letter from the donor (e.g., parent) confirming the gift, a copy of their bank statement showing the $100,000, and your bank statement showing the $100,000 deposited into your account before the business closing.
Insider move
Lenders must verify that gift funds are genuine, unencumbered, and truly unconditional, meaning no expectation of repayment. They meticulously trace the funds to prevent disguised loans that could compromise the borrower's equity position or cash flow.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA Form 1919 - Borrower Information Form
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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