Glossary · Your money in the deal
Irrevocable gift
In short
This is a cash gift from a third party (like a family member) that is permanently given to the borrower for their equity injection. The giver cannot expect repayment or any benefit.
What it means in a deal
If you're using gifted funds for your down payment, the SBA requires a signed gift letter stating the funds are an irrevocable gift, with no expectation of repayment. The funds must be seasoned in your account before closing. This avoids disguised debt that would reduce your true equity.
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 Irrevocable 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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