Borrower guide · Money in
SBA loan down payment requirements
SBA loans are known for low money-down, but low is not none. What you actually inject depends on whether you are buying a business, starting one, or buying property — and whether it is a 7(a) or a 504.
Down payment vs. equity injection
SBA guidelines never say “down payment.” What a banker means is your equity injection — the cash you put in so the deal is not 100% financed. The distinction matters because a specific rule governs how much is required and what is allowed to count toward it.
The 10% rule for buying or starting a business
Under SOP 50 10 8, a minimum 10% equity injection is required in two situations: a change of ownership (buying a business) and a startup. The 10% is measured against total project cost — purchase price plus any working capital, closing costs and fees financed alongside it.
The part borrowers miss: on an acquisition, up to half of that 10% can come from a seller note, but only if the note is on full standby — no payments of principal or interest — for at least the first 24 months. On a $500,000 purchase you might put in $25,000 cash and have the seller carry another $25,000 on standby. Our seller financing guide walks through it.
504 down payment: 10, 15 or 20 percent
The 504 program layers its requirement: 10% for an established business buying general-use property; add 5% if the business is a startup (under two years old); add another 5% if the building is special-purpose — a hotel, gas station, car wash or bowling alley, something hard to repurpose. A startup buying a special-purpose property is the 20% case. Find the CDCs that fund projects like yours to compare.
Where the cash can come from
- Personal savings (expect to show two months of statements)
- A documented gift from family
- Home equity or a retirement rollover (ROBS)
- A seller note on full standby, for acquisitions
Borrowed funds generally cannot count unless the debt is itself on full standby, because the point of the injection is real skin in the game.
Equity injection calculator
Enter purchase price, working capital and fees and see the minimum cash you need — and how much a seller note on standby could cover.
Work out your injection →What the record shows about deal sizes
our dataThe median SBA 7(a) loan is $178,850, so a typical 10% injection runs around $18,000–$20,000. Half of all loans fall between $55k and $500k, putting most injections between roughly $5,500 and $50,000 — acquisitions skew to the higher end. Put your exact numbers in below.
Common questions
Do SBA loans require a down payment?
Not by that name. SBA rules require an equity injection — usually a minimum of 10% — and it is mandatory for business acquisitions and startups. Some working-capital and refinance deals need none.
Can the seller cover my down payment?
Partly. On a business acquisition, up to half of the required 10% can come from a seller note, but only if that note is on full standby — no payments — for at least the first two years.
How much is the down payment on a 504 loan?
Ten percent for an established business buying standard property, 15% if you are a startup or the property is special-purpose, and 20% if both.
Keep going
Rules described here follow SBA SOP 50 10 8 (effective June 1, 2025) and can change; lenders add their own overlays. This is education, not advice — confirm specifics with your lender. Figures cited as “our data” come from the SBA 7(a) & 504 FOIA record, released 2026-06-30.