Glossary · Your money in the deal
Gift
In short
A gift is money given to the buyer by an immediate family member to fund a portion of their equity injection. It must be truly unencumbered and not require repayment.
What it means in a deal
If you're using a gift for your down payment, the lender will require a gift letter from the donor confirming it's a true gift with no expectation of repayment. The funds must be seasoned in your bank account or transferred directly to escrow. This is a common way to meet the equity injection requirement.
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 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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