SBA loan basics
Short answer
Yes, funds gifted by family members or friends can count towards the equity injection for an SBA 7(a) loan, provided specific documentation requirements are met.
Gifted funds are an acceptable source for equity injection if the gift is irrevocable, has no repayment expectation, and the donor is not a person or entity with an interest in the business or an associate of the seller. A gift letter from the donor and verification of the transfer of funds are typically required to prove the gift's legitimacy.
A borrower receives a $30,000 gift from their parents for their business down payment. They would need to provide a gift letter from their parents stating it's an irrevocable gift with no repayment terms, and bank statements showing the funds transferred to the borrower's account.
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
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.
More on down payment & equity injection
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day