SBA loan basics
Short answer
For a business acquisition, the typical minimum down payment, or equity injection, required from the borrower for an SBA 7(a) loan is usually around 10% of the total project cost.
For a change of ownership, the SBA generally requires a minimum equity injection of 10% of the total project costs. This injection must come from the borrower's verifiable personal resources, or in some cases, a seller note on full standby for the life of the loan can be considered part of the equity.
If you are acquiring a business for $700,000, and the total project cost (including inventory, working capital, fees, etc.) is $750,000, you would generally need to provide at least $75,000 in cash or other eligible equity from your own funds.
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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