SBA 7(a) Q&A
Short answer
The minimum cash equity injection required for most business acquisitions financed with an SBA 7(a) loan is 10% of the total project costs, though some situations may require more.
SBA rules generally require a minimum of 10% equity injection from the buyer for a change of ownership. If the transaction includes goodwill, the equity injection must be at least 10% of the total project costs. Project costs include the purchase price, working capital, and eligible fees. The lender determines if a higher injection is needed based on the business's cash flow.
For a $1,000,000 business acquisition, including purchase price and working capital, the buyer must inject at least $100,000 in cash equity.
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.
More on down payment & equity injection
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