SBA 7(a) Q&A
Short answer
A gift from a foreign relative requires extensive documentation, including a gift letter, proof of fund transfer, and verification of the donor's source of funds.
For a gift from a foreign relative, the SBA requires a signed gift letter stating the funds are a true gift with no expectation of repayment. Additionally, lenders must document the transfer of funds from the donor's foreign bank account to the borrower's domestic account and, critically, verify the donor's source of funds through bank statements or other financial records to ensure they are legitimate and unencumbered.
A buyer receives a $50,000 gift from an aunt in Canada. The lender will require a signed gift letter from the aunt, bank statements showing the funds originating from her Canadian account, and the transfer of funds to the buyer's US account. The aunt's source of funds must also be clear.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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