Glossary · Your money in the deal
Gifted funds
In short
Money given to you by an immediate family member without expectation of repayment, used as part of your equity injection for an SBA loan. This helps you meet the required down payment.
What it means in a deal
Gifted funds are an acceptable source for your equity injection, but they must be "unencumbered," meaning the giver can't expect to be repaid. The SBA requires a specific gift letter and proof of funds from the donor. Ensure the funds are transferred directly to your account before closing.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Gifted funds
- What are the rules for using gifted family funds as equity?
- What specific documentation is required if my equity injection includes gifted funds?
- Can funds gifted by a non-family investor contribute to my equity injection?
- Can I use gifted funds from a non-relative for my down payment?
- Can gifted funds be used for the down payment on a 7(a) loan?
- How does the SBA 7(a) loan process verify the source of gifted equity injection funds?
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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