SBA loan basics
Short answer
The typical down payment, known as equity injection, for an SBA 7(a) loan ranges from 10% to 30% of the total project cost. The exact percentage depends on the type of business and use of funds.
The SBA requires borrowers to inject their own equity into the business to demonstrate commitment and mitigate risk. For business acquisitions, 10% is a common minimum for an established business with strong cash flow. Start-ups or businesses with higher perceived risk may require 20-30% or more.
If you are buying an existing business for $500,000, you might need to provide at least $50,000 (10%) as an equity injection. For a brand new start-up, a $500,000 project might require $100,000 to $150,000 (20-30%) in equity.
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
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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