Glossary · Your money in the deal
Gift funds
In short
Money given to a buyer by an eligible donor (usually a close relative) to be used as part of their equity injection in an SBA loan. It reduces the cash you need to bring to the table yourself.
What it means in a deal
The SBA allows gift funds for the equity injection, but they must be "unconditional" and from an eligible source. The donor must sign a gift letter stating no repayment is expected. Lenders will verify the source of these funds, so track the money from the donor's account to yours.
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 funds
- 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 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?
- What if the gift funds for my down payment are from a distant relative or friend?
- Can gift funds from a non-U.S. relative count towards my SBA 7(a) 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.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.