SBA 7(a) Q&A
Short answer
For a change of ownership, the buyer is generally required to inject a minimum of 10% of the total project costs from their own equity sources.
The SBA mandates a minimum 10% equity injection from the buyer for business acquisitions. This injection demonstrates the buyer's commitment and reduces the lender's exposure. The equity must come from acceptable sources, such as cash, unencumbered assets, or a properly structured seller note.
If the total project cost to acquire a business is $800,000, the buyer must contribute at least $80,000 (10%) from personal funds or other approved equity sources.
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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