SBA loan basics
Short answer
The typical minimum cash down payment, or equity injection, for an SBA 7(a) loan ranges from 10% to 30% of the total project cost, depending on the deal type and risk.
The SBA requires borrowers to inject a reasonable amount of equity into the business being financed. For business acquisitions, it's typically 10% for established profitable businesses, but can be 15-25% or more for startups, changes of ownership with goodwill, or less profitable ventures. The injection demonstrates the borrower's commitment and reduces the loan-to-value ratio.
If a borrower is acquiring a business for $500,000 and the lender requires a 10% equity injection, the borrower would need to contribute $50,000 in cash or eligible assets to the project.
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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