SBA loan basics
Short answer
The SBA typically expects a minimum equity injection of 10% of the total project cost for most business acquisitions, though it can vary based on the specific project and industry.
For a change of ownership (business acquisition), the SBA typically requires a minimum of 10% equity injection by the buyer. For other uses like real estate or equipment, the percentage can vary, but generally, the borrower is expected to contribute a reasonable amount to show commitment.
A borrower acquiring a business for $700,000, which includes real estate and working capital, will need to inject at least $70,000 (10%) of their own capital into the deal.
Insider move
Lenders verify the source and sufficiency of the equity injection to ensure it is unencumbered and meets the SBA's minimum requirements, as this demonstrates the borrower's commitment to the business.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
More on down payment & equity injection
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