SBA 7(a) Q&A
Short answer
The minimum cash injection required from the buyer for most business acquisitions is 10% of the total project costs, though this can sometimes be reduced with certain seller note structures.
SBA rules typically require an equity injection of at least 10% of the total project costs for business acquisitions. This injection must come from the buyer's unencumbered personal funds or other eligible sources. The percentage can sometimes be a bit lower if a seller note on full standby meets specific criteria, effectively counting towards the injection.
For a $1,000,000 business acquisition with $50,000 in working capital and $20,000 in closing costs, the total project is $1,070,000. The buyer would need to inject at least $107,000 in cash.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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