SBA 7(a) Q&A
Short answer
The minimum equity injection required is typically 10% of the total project costs for a business acquisition, which would be $50,000 for a $500,000 acquisition.
SBA policy generally requires a minimum of 10% equity injection from the buyer for business acquisitions. This 10% must come from eligible sources and demonstrates the buyer's financial commitment to the venture. The total project cost includes the purchase price, working capital, and any financing fees.
If the total project cost for buying a business is $500,000, the buyer would need to show at least $50,000 in eligible equity injection. A lender would verify the source and availability of these funds.
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.
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