SBA loan basics
Short answer
For a business acquisition, the typical down payment (or equity injection) required for an SBA 7(a) loan is a minimum of 10% to 20% of the total project cost, though it can be higher depending on the business and lender.
The SBA requires the borrower to inject adequate equity to demonstrate a personal financial commitment. For business acquisitions, a minimum of 10% is generally required, but lenders often prefer higher amounts or require it for riskier deals.
If you are buying a business for $500,000, the total project cost (including inventory, working capital, fees) might be $550,000. A 10% equity injection would be $55,000, while a 20% injection would be $110,000.
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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