Glossary · Your money in the deal
Unconditional Gift
In short
This is money received from an immediate family member without any expectation of repayment or future consideration. It can be used as part of your equity injection for an SBA 7(a) loan, provided it's properly documented.
What it means in a deal
An unconditional gift must be documented with a gift letter, signed by the donor, stating no repayment is expected and no lien will be placed on the business. These funds must be "seasoned" in your bank account or transferred directly to escrow at closing. Lenders will scrutinize the source to ensure it's not disguised debt.
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 Unconditional 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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