SBA 7(a) Q&A
Short answer
An SBA 7(a) loan can finance up to 90% of the business purchase price for an acquisition, with a minimum 10% equity injection typically required from the buyer.
The SBA mandates a minimum 10% equity injection from the buyer for a change of ownership. This means the loan can cover the remaining 90% of the eligible project costs, including the purchase price, working capital, and eligible closing costs, up to the maximum SBA loan amount.
For a business purchase price of $1,000,000, the buyer would need to inject at least $100,000 (10%) in equity, and the SBA 7(a) loan could finance up to $900,000, assuming it doesn't exceed the program's maximum loan limit.
Insider move
Lenders must ensure the buyer's equity injection meets the minimum 10% requirement and verify its source. They also assess the overall project costs to ensure the loan amount requested aligns with SBA guidelines and maximums.
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 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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.
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day