SBA loan basics
Short answer
The typical minimum down payment, or equity injection, for an SBA 7(a) loan is usually around 10%, but it can be higher depending on the type of business, the loan's purpose, and the lender's requirements.
For business acquisitions, the SBA generally requires a minimum of 10% equity injection from the borrower. For startups, this percentage is often higher, typically 15-20% or more, due to increased risk. The injection can include cash, seller notes on full standby, or certain other eligible assets.
A borrower buying an existing dry-cleaning business for $400,000 would need at least $40,000 (10%) as an equity injection. If it were a startup dry cleaner, the required injection might increase to $60,000-$80,000.
Lenders will verify the source and sufficiency of the equity injection. They look for clean, liquid funds from an acceptable source and ensure that any seller financing used as equity meets the SBA's strict 'full standby' requirements.
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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