SBA loan basics
Short answer
If your equity injection is from a personal gift, you'll need a signed gift letter from the donor and bank statements verifying the transfer of funds to your account.
The gift letter must explicitly state that the funds are a gift, not a loan, with no expectation of repayment, and include the donor's name, address, relationship to borrower, and the amount. Documentation of the fund transfer is also required to show it's unencumbered.
If your parents gift you $50,000 for your down payment, you'd provide a letter signed by them stating it's a gift, along with bank statements showing the $50,000 moving from their account to yours.
Insider move
Lenders meticulously verify the source of gifted funds to ensure they are legitimate and truly unencumbered, confirming there is no hidden repayment obligation that would reduce the borrower's true equity in the business.
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 2026-06-14. 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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