SBA loan basics
Short answer
Yes, a gift from a family member can be used for your SBA 7(a) loan down payment, provided specific documentation requirements are met.
The gift must be genuinely unencumbered and provided without any expectation of repayment. The donor must sign a gift letter stating this, and the funds must be transferred to the borrower's account. This ensures the funds are truly equity and not a disguised loan that would increase the borrower's debt.
A borrower receives a $50,000 gift from their parents for a business acquisition. They provide a signed gift letter from their parents and bank statements showing the funds transfer into their personal account.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
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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