SBA loan basics
Short answer
Yes, gifted funds can generally be used for the equity injection (down payment), provided the gift is unconditional and properly documented.
The SBA permits gifted funds from immediate family members as part of the borrower's equity injection, provided the gift is truly unconditional, does not need to be repaid, and is clearly documented with a gift letter and proof of funds transfer.
If a borrower needs a $50,000 down payment, a $50,000 gift from their parents, accompanied by a gift letter stating it's not a loan and proof of transfer to the borrower's account, would be acceptable.
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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