SBA 7(a) Q&A
Short answer
You will need a formal gift letter, signed by the donor, stating the funds are an unconditional gift, along with bank statements from both the donor and recipient showing the transfer.
The SBA requires gifts for equity injection to be unconditional and non-repayable. A gift letter must explicitly state this, and the lender will verify the donor's ability to provide the gift and the clear trail of funds into the borrower's account.
If a family member gifts $50,000 for your down payment, they must provide a signed letter confirming it's a gift with no expectation of repayment, along with bank statements proving they had the funds and showing the transfer to your account.
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 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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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