SBA 7(a) Q&A
Short answer
If a gift for equity injection comes from an entity, comprehensive documentation is required, including the entity's financial statements and proof of its legal ability to make the gift.
When an entity (e.g., a corporation, LLC) provides a gift for equity injection, the lender needs to verify the entity's financial health, the legitimacy of its funds, and that the gift is authorized by its governing documents. This includes corporate resolutions, financial statements, and a detailed gift letter from the entity, similar to individual gift requirements but with an added layer of corporate governance review.
If a company you previously worked for wants to gift your new business $30,000 towards your equity, the lender would require their corporate resolution authorizing the gift, financial statements for the gifting entity, and a detailed gift letter signed by an authorized officer, along with bank statements showing the transfer.
Insider move
Lenders need to ensure the entity providing the gift is legitimate and that the gift does not create any hidden liabilities or conflicts of interest for the borrower or the acquired business. They verify the financial capacity and legal authority of the gifting entity.
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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