Almost always, yes, an SBA 7(a) business-acquisition loan requires a minimum 10% down payment (equity injection), and at least half of that must be your own cash. True zero-down deals are rare. But part of the down payment can come from a seller note on full standby or a retirement rollover, so the cash you personally bring can be smaller than the full 10%.
Why lenders require a down payment
The equity injection is your "skin in the game." It reduces the lender's risk, proves you're financially committed, and lowers the loan balance so the business's cash flow can cover the payment. Under current SBA rules, most 7(a) acquisitions require 10% of total project cost, with at least 5% in genuine buyer equity.
| Source | Amount |
|---|---|
| Buyer cash (minimum 5%) | $30,000 |
| Seller note on full standby (up to 5%) | $30,000 |
| Total 10% injection | $60,000 |
Where the money can come from
- Personal savings, seasoned and shown on statements.
- A documented gift, with a gift letter.
- Retirement rollover (ROBS), 401(k)/IRA funds without an early-withdrawal penalty.
- Home equity (HELOC), allowed by many lenders; adds a payment.
- A standby seller note, up to half the injection, if it qualifies.
Lenders verify the source of funds, so it must be traceable. See the details in how much you put down on an SBA loan and the full equity injection guide.
"No money down", the honest version
Buying with zero dollars of your own is uncommon under standard SBA rules. Structures like a low- and no-money-down deal can cut your personal cash, a standby seller note, a ROBS rollover, or investor partners, but rarely take it all the way to zero.
Frequently asked questions
Almost always, SBA acquisition loans require a minimum 10% injection, at least half in your own cash. Part can come from a standby seller note or a rollover.
Rarely, under standard SBA rules requiring 10% with 5% real equity. Creative structures reduce your personal cash but seldom bring it to zero.
Savings, a documented gift, a 401(k)/IRA rollover, home equity, or a qualifying standby seller note. It must be traceable, with at least half genuine equity.
