{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-is-the-minimum-equity-injection-down-payment-for-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/what-is-the-minimum-equity-injection-down-payment-for-an-sba-7-a-loan","question":"What is the minimum equity injection (down payment) for an SBA 7(a) loan?","topic":"Down payment & Equity","audience":"new","bot_mode":"buyer","short_answer":"The minimum equity injection for an SBA 7(a) business acquisition loan is typically 10% of the total project cost, though some situations may require more.","rule":"For a change of ownership, the borrower generally must inject at least 10% of the total project cost in equity. This ensures the borrower has a vested interest in the business's success. The lender may require a higher injection based on the business's strength or perceived risk.","example":"If the total project cost (purchase price + working capital + fees) for a business acquisition is $1,000,000, the buyer would need to contribute at least $100,000 in qualifying equity.","what_lenders_check":"Lenders carefully verify the source and sufficiency of the equity injection. They want to ensure it's truly \"at risk\" capital and not borrowed funds that would increase the borrower's overall leverage, especially for higher-risk acquisitions.","required_facts":["10% minimum","Business acquisition","Project cost","Lender discretion"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"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"}],"related_questions":[{"question":"Can I use funds from a friend as equity for my SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/can-i-use-funds-from-a-friend-as-equity-for-my-sba-7-a-loan"},{"question":"Can I use a gift from my parents for my SBA 7(a) loan down payment?","url":"https://dealroom.so/sba-loans/basics/can-i-use-a-gift-from-my-parents-for-my-sba-7-a-loan-down-payment"},{"question":"Can gift funds from a non-U.S. relative count towards my SBA 7(a) down payment?","url":"https://dealroom.so/sba-loans/basics/can-gift-funds-from-a-non-u-s-relative-count-towards-my-sba-7-a-down-payment"}],"related_terms":[{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-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/what-is-the-minimum-equity-injection-down-payment-for-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."]}