SBA loan basics
Short answer
The typical minimum cash down payment (also called equity injection) for an SBA 7(a) business acquisition loan is usually 10% to 20% of the total project cost. The exact percentage can vary based on the specific deal and lender assessment.
The SBA requires a reasonable equity injection from the borrower to demonstrate commitment and mitigate risk. For business acquisitions, 10% is a common minimum, but higher injections are often viewed favorably. The equity can come from various sources, including cash, a seller note (on full standby), or other eligible forms.
A business is being purchased for $1,000,000. The buyer might need to inject $100,000 to $200,000 as a cash down payment, with the remaining financed by the SBA 7(a) 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
SBA 7(a) Loans Overview
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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