SBA loan basics
Short answer
Yes, generally an equity injection (down payment) is required, typically starting at 10% for business acquisitions. For other loan purposes, the requirement varies but usually involves some form of borrower injection.
The SBA requires borrowers to have a reasonable amount of their own capital at risk in the business. For business acquisitions, the minimum equity injection is usually 10%, though lenders may require more depending on the business's strength and specific deal structure.
If you are buying a business for $500,000, you would typically need to inject at least $50,000 of your own cash or eligible equity into the deal.
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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