SBA 7(a) Q&A
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.
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.
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.
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.
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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