SBA loan basics
Short answer
Generally, a minimum of 10% of the total project cost is required as an equity injection for most SBA 7(a) loans, especially for business acquisitions or startups.
The SBA requires borrowers to inject a reasonable amount of their own capital into the business as evidence of commitment. While 10% is a common minimum, the actual required percentage can vary based on factors like the type of business, industry risk, business valuation, and the lender's specific credit policies. This injection must come from verifiable and unencumbered sources.
For a project costing $400,000 (e.g., $350,000 business purchase + $50,000 working capital), a borrower would typically need to inject at least $40,000 (10%) of their own funds. However, the lender might require $60,000 (15%) for a high-goodwill acquisition.
Insider move
Lenders verify the source and sufficiency of the equity injection to ensure it is liquid, unencumbered, and demonstrates the borrower's commitment to the business. A higher injection often translates to a more favorable assessment of the borrower's capacity and reduces overall risk.
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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