SBA 7(a) Q&A
Short answer
Gift funds for an equity injection require a gift letter from the donor, bank statements verifying the donor's ability to give the funds, and proof of transfer to the borrower's account. The gift must be unconditional with no repayment expected.
SBA rules require gift funds to be properly documented to ensure they are a genuine, unconditional gift and not a disguised loan. The gift letter must state the amount, that it's a gift, and that there's no expectation of repayment. Lenders must verify the donor's source of funds and the actual transfer.
If your parents gift you $75,000 for your equity injection, you would need a signed gift letter from them, their bank statements showing they had $75,000+, and bank statements showing the $75,000 being deposited into your account.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
FAQ Related to Recent SBA Procedural Notices
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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