SBA loan basics
Short answer
The minimum equity injection for an SBA 7(a) business acquisition loan is typically 10% of the total project cost, though some situations may require more.
For a change of ownership, the borrower generally must inject at least 10% of the total project cost in equity. This ensures the borrower has a vested interest in the business's success. The lender may require a higher injection based on the business's strength or perceived risk.
If the total project cost (purchase price + working capital + fees) for a business acquisition is $1,000,000, the buyer would need to contribute at least $100,000 in qualifying equity.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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