{"ok":true,"canonical_url":"https://dealroom.so/glossary/down-payment","api_url":"https://dealroom.so/api/public/glossary/down-payment","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"down-payment","term":"Down payment","group":"Your money in the deal","definition":"The portion of the business purchase price you pay upfront in cash, not financed by the loan. This demonstrates your commitment and reduces the lender's risk.","what_it_means":"For an SBA 7(a) loan, the standard minimum down payment (equity injection) is 10-15% of the total project cost, but it can be higher depending on the business. Ensure your funds are \"seasoned\" (in your account for at least 90 days) or properly documented as a gift or from a sale of an asset.","url":"https://dealroom.so/glossary/down-payment","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"}],"related_questions":[{"question":"What counts as \"my own money\" for the down payment?","url":"https://dealroom.so/sba-loans/basics/what-counts-as-my-own-money-for-the-down-payment"},{"question":"Can an investor fund my SBA 7(a) down payment?","url":"https://dealroom.so/sba-7a/questions/can-an-investor-fund-my-sba-7-a-down-payment"},{"question":"Is my equity injection (down payment) always required to be cash?","url":"https://dealroom.so/sba-loans/basics/is-my-equity-injection-down-payment-always-required-to-be-cash"},{"question":"What if my down payment funds are transferred from an international account?","url":"https://dealroom.so/sba-7a/questions/what-if-my-down-payment-funds-are-transferred-from-an-international-account"},{"question":"Can a credit card cash advance be used for my down payment?","url":"https://dealroom.so/sba-loans/basics/can-a-credit-card-cash-advance-be-used-for-my-down-payment"},{"question":"Does a loan from a relative count towards my required down payment?","url":"https://dealroom.so/sba-loans/basics/does-a-loan-from-a-relative-count-towards-my-required-down-payment"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Down payment","url":"https://dealroom.so/glossary/down-payment","source_type":"DealRoom Data"}}