SBA loan basics
Short answer
The typical down payment (or equity injection) for an SBA 7(a) loan is usually between 10% and 30% of the total project cost, depending on the type of business, the industry, and the strength of the borrower.
The SBA requires the borrower to inject a reasonable amount of equity into the business to ensure they have a vested interest. For business acquisitions, this is often 10% to 20%, but can be higher if there's no real estate involved or if the business is a startup. The required injection ensures the borrower shares the risk.
For a $1 million business acquisition, the total project cost might be $1.1 million (including fees). With a 10% equity injection, the borrower would need to contribute $110,000 of their own funds, with the SBA 7(a) loan covering the remaining $990,000.
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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