SBA 7(a) Q&A
Short answer
The SBA generally requires a minimum equity injection of 10% of the total project cost for a business acquisition.
This 10% minimum injection ensures the borrower has a meaningful stake in the business, aligning their interests with the lender and the SBA. It reduces the overall risk of the loan.
If the total cost of acquiring a business, including purchase price, working capital, and closing costs, is $1,200,000, the buyer must contribute at least $120,000 as equity injection.
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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