SBA 7(a) Q&A
Short answer
For a gift from an immediate family member to count as equity, specific documentation is required, including a gift letter, proof of fund transfer, and verification of the donor's source of funds.
The lender needs a signed gift letter from the donor stating the funds are a true gift (no repayment expected), the amount, and that the donor has no ownership interest in the business. The lender will also require bank statements from the donor showing the funds in their account for at least two months prior to the gift, and bank statements from the borrower showing receipt of the funds. This verifies the legitimacy and unencumbered nature of the gift.
Your mother gifts you $50,000 for your down payment. You'll need a signed gift letter from her, bank statements proving she had the $50,000, and your bank statements showing the $50,000 deposited and cleared.
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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