SBA loan basics
Short answer
An inheritance can be used for your equity injection, but the lender will require documentation to verify the funds' source and ensure they are unencumbered.
Funds from an inheritance are considered eligible for the equity injection, provided they are properly documented and verified. The lender will need to see proof of the inheritance (e.g., probate documents, bank statements showing receipt of funds) and confirm that these funds are unencumbered (not borrowed or subject to repayment). This ensures the capital genuinely represents the borrower's independent contribution.
Sarah receives a $100,000 inheritance one month before her business acquisition loan closing. She provides the lender with bank statements showing the funds deposited and probate documents, allowing her to use this for her required 10% equity injection.
Insider move
Lenders need to ensure the source of funds for the equity injection is legitimate and unencumbered. An inheritance, while acceptable, requires clear paper trails to prevent any appearance of borrowed funds or other ineligible sources.
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
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 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