{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-percentage-of-project-costs-that-can-be-funded-by-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/what-is-the-maximum-percentage-of-project-costs-that-can-be-funded-by-an-sba-7-a-loan","question":"What is the maximum percentage of project costs that can be funded by an SBA 7(a) loan?","topic":"Loan terms","audience":"borrower","bot_mode":"buyer","short_answer":"An SBA 7(a) loan can finance up to 90% of the total project costs, with the remaining minimum 10% typically coming from the buyer's equity injection.","rule":"The SBA program is designed to fill gaps in conventional lending by guaranteeing a portion of the loan, but it still requires the borrower to have a significant stake. The maximum loan-to-cost ratio is 90%, leaving 10% for the borrower's equity injection.","example":"For a business acquisition with total project costs of $1,000,000, an SBA 7(a) loan can cover up to $900,000, assuming the borrower provides a minimum $100,000 equity injection.","what_lenders_check":"Lenders ensure that the total loan amount does not exceed 90% of eligible project costs and that the borrower's 10% equity injection is adequately sourced and documented.","required_facts":["Project costs","Loan-to-cost ratio","Equity injection","Maximum loan amount","SBA guarantee"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","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":"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 the maximum loan term for an SBA 7(a) loan that finances only a business acquisition without real estate?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-loan-term-for-an-sba-7-a-loan-that-finances-only-a-business-acquisitio"},{"question":"What is the maximum loan term for a 7(a) loan primarily for equipment with no real estate?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-loan-term-for-a-7-a-loan-primarily-for-equipment-with-no-real-estate"},{"question":"What is the maximum loan term for an SBA 7(a) loan used solely to acquire real estate?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-loan-term-for-an-sba-7-a-loan-used-solely-to-acquire-real-estate"},{"question":"What is the typical repayment term for an SBA 7(a) loan that finances only a business acquisition and no real estate?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-repayment-term-for-an-sba-7-a-loan-that-finances-only-a-business-acqui"},{"question":"What is the longest time I can repay an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-longest-time-i-can-repay-an-sba-7-a-loan"},{"question":"What is the average repayment term length for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-average-repayment-term-length-for-an-sba-7-a-loan"}],"related_terms":[{"term":"Project costs","url":"https://dealroom.so/glossary/project-costs"},{"term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"term":"Maximum SBA 7(a) Loan Amount","url":"https://dealroom.so/glossary/maximum-sba-7-a-loan-amount"},{"term":"Cancellation of the SBA guaranty","url":"https://dealroom.so/glossary/cancellation-of-the-sba-guaranty"},{"term":"Guaranty Percentage","url":"https://dealroom.so/glossary/guaranty-percentage"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-percentage-of-project-costs-that-can-be-funded-by-an-sba-7-a-loan","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."]}