SBA 7(a) Q&A
Short answer
Yes, funds from family members or other investors can count towards your equity injection, provided they are structured as an unencumbered gift or an equity investment.
SBA allows gifted funds or bona fide equity investments from third parties to count towards the borrower's equity injection. For gifts, a gift letter stating no repayment is expected is required. For investments, clear documentation proving it's an equity stake and not a disguised loan is necessary, ensuring the funds are unencumbered.
A buyer needs $100,000 equity. Their parents provide $50,000 as a gift, and a friend invests $25,000 for a minority equity stake. Both can count, along with $25,000 from the buyer's personal savings.
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 2026-06-14. 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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