{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/how-much-of-my-own-money-do-i-need-to-invest-in-the-business","api_url":"https://dealroom.so/api/public/questions/how-much-of-my-own-money-do-i-need-to-invest-in-the-business","question":"How much of my own money do I need to invest in the business?","topic":"Down Payment & Equity Injection","audience":"new","bot_mode":"buyer","short_answer":"The minimum equity injection (down payment) for an SBA 7(a) loan typically ranges from 10% to 20% of the project cost, though it can vary based on the specific loan purpose and lender's assessment.","rule":"SBA requires an equity injection from the borrower to demonstrate their personal stake and commitment to the business. While the SBA generally looks for a minimum of 10% cash injection for most acquisitions, lenders may require more depending on the deal structure, industry, and perceived risk.","example":"If you are buying a business for $1,000,000, you will generally need to provide at least $100,000 (10%) of your own funds as equity. Some lenders might require $150,000 (15%) or $200,000 (20%) based on their specific risk assessment for that particular business.","what_lenders_check":"Lenders verify the source and sufficiency of the equity injection to ensure it is not borrowed or from unacceptable sources. They want to see genuine owner investment and commitment, as it significantly impacts the borrower's motivation and the business's financial stability.","required_facts":["10% to 20% equity","Owner investment","Source verification","Project cost dependent"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"What is usually the minimum cash down payment required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-usually-the-minimum-cash-down-payment-required-for-an-sba-7-a-loan"},{"question":"Can the down payment for an SBA 7(a) loan come from a gift from family or friends?","url":"https://dealroom.so/sba-loans/basics/can-the-down-payment-for-an-sba-7-a-loan-come-from-a-gift-from-family-or-friends"},{"question":"What types of assets or funds count as 'equity injection' for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-types-of-assets-or-funds-count-as-equity-injection-for-an-sba-7-a-loan"},{"question":"Do I need to put a cash down payment for an SBA 7(a) loan to buy a business?","url":"https://dealroom.so/sba-loans/basics/do-i-need-to-put-a-cash-down-payment-for-an-sba-7-a-loan-to-buy-a-business"},{"question":"Can I use existing business assets I already own as part of my down payment for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-i-use-existing-business-assets-i-already-own-as-part-of-my-down-payment-for-an-sba-7-a"},{"question":"Can an investor provide funds for my SBA 7(a) down payment without becoming an owner?","url":"https://dealroom.so/sba-loans/basics/can-an-investor-provide-funds-for-my-sba-7-a-down-payment-without-becoming-an-owner"}],"related_terms":[{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Subordinated in payment","url":"https://dealroom.so/glossary/subordinated-in-payment"},{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"Alienate the Business","url":"https://dealroom.so/glossary/alienate-the-business"},{"term":"Money Laundering","url":"https://dealroom.so/glossary/money-laundering"},{"term":"Denial of the Guaranty","url":"https://dealroom.so/glossary/denial-of-the-guaranty"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/how-much-of-my-own-money-do-i-need-to-invest-in-the-business","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}