SBA loan basics
Short answer
If you don't have enough personal cash, you might be able to use other sources like seller financing on full standby, gifted funds from eligible sources, or equity in other assets, as long as they meet SBA rules.
The required equity injection (down payment) for SBA 7(a) loans, typically 10-30%, can come from various sources. While cash from the borrower is preferred, funds from a gift (from a close family member with no expectation of repayment), or a seller note on full standby (no payments until the SBA loan is repaid), can also count. Equity in real estate or other assets can sometimes be considered, depending on the specific transaction.
A buyer needs a 10% down payment of $50,000 for a $500,000 acquisition. They have $20,000 cash. The seller agrees to provide a $30,000 note on full standby, which counts towards the equity injection, allowing the buyer to proceed with the SBA loan.
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
FAQ Related to Recent SBA Procedural Notices
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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