Glossary · Your money in the deal
Genuine gift
In short
This is money given to the buyer for their equity injection that does not need to be repaid. The SBA allows gifts from immediate family, but they must be truly unconditional.
What it means in a deal
A genuine gift requires a gift letter from the donor, stating no repayment is expected and no lien will be placed on the business. The funds must be transferred to your account before closing and meet seasoning of funds requirements, just like your own money.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Genuine gift
- How does a lender verify a gift used for equity injection?
- What specific documentation is required for gift funds used for an equity injection?
- What documentation is needed if my equity injection comes from a personal gift?
- Can a family gift count for my SBA 7(a) loan down payment?
- Can gift funds from a non-family investor count towards my down payment?
- If my parents gift me $75,000 for a down payment, what documentation is required?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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