Glossary · Your money in the deal
Gift Fund
In short
Money provided by an immediate family member to a borrower for their equity injection, which must be a true gift, not a loan with repayment expectations.
What it means in a deal
The SBA allows gift funds to count towards your equity injection, but strict rules apply. The donor must be an immediate family member and sign a gift letter confirming the funds are an irrevocable gift. The funds should ideally be seasoned, or fully documented if recent, to show they're truly yours.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Gift Fund
- What specific documentation is required for gift funds used for an equity injection?
- Can gift funds from a non-family investor count towards my down payment?
- Can an investor fund my SBA 7(a) down payment?
- How does life insurance effectively fund a business buy-sell agreement?
- Can gift funds from a non-U.S. citizen parent be used for my equity injection?
- Can I use gift funds from family members for my SBA 7(a) loan down payment?
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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