SBA loan basics
Short answer
For business acquisitions, the typical minimum down payment (also called equity injection) is 10% to 15% of the total project cost. This percentage can vary depending on the business type, industry, and lender's assessment of risk.
The SBA requires borrowers to inject a reasonable amount of their own capital into the project, demonstrating their commitment and reducing the overall loan risk. This injection must come from verifiable sources and cannot be another loan that puts the business or borrower at undue risk.
If you are buying a business for $1 million, with an additional $100,000 for working capital and closing costs, the total project cost is $1.1 million. A 10% down payment would be $110,000, which must be injected by the buyer.
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
SBA Form 1919 - Borrower Information Form
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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