SBA loan basics
Short answer
For buying a business with an SBA 7(a) loan, the typical minimum down payment (equity injection) required by the SBA is 10-15% of the total project cost, though some lenders may require more.
The SBA generally requires an equity injection of at least 10% for change of ownership transactions, and often 15% for startups. This injection can come from the borrower's cash, qualified seller financing on full standby, or a combination. The purpose is to ensure the borrower has a substantial personal stake in the business.
If you are acquiring a business for $700,000, you would typically need to provide at least $70,000 (10%) as an equity injection. The remaining $630,000 could be financed by an 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 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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