The short answer: The SBA 7(a) program lets you buy a business with a minimum 10% equity injection, a term up to 10 years (25 with real estate), and rates tied to WSJ Prime (6.75% in July 2026). Up to half of your 10% down can come from a seller note on full standby. The business's cash flow must cover the new debt at a DSCR of ~1.15×, 1.25×, and you'll sign a personal guarantee.
The SBA acquisition capital stack
Every SBA business-acquisition deal is a stack of money from different sources that adds up to the purchase price plus costs. A typical $1,000,000 deal under current rules looks like this:
| Source | Amount | % of price | Notes |
|---|---|---|---|
| SBA 7(a) bank loan | $900,000 | 90% | Up to 10-yr term, ~9.75% rate (Prime + 3.0%) |
| Your cash injection | $50,000 | 5% | Minimum half of the 10% injection |
| Seller note (full standby) | $50,000 | 5% | Counts toward injection if ≤50% of it & on standby for the loan's life |
| Total | $1,000,000 | 100% | Plus working capital & fees, often financed |
Run your own numbers with the SBA loan calculator and max purchase price calculator.
What changed under SOP 50 10 8 (2025 to 2026)
The SBA rewrote its rulebook (SOP 50 10 8, effective June 1, 2025), the biggest lending overhaul in five years, and layered on new ownership rules for 2026. The essentials for buyers:
- Hard 10% equity injection floor on every complete change of ownership (ESOPs exempt). Full breakdown →
- Seller notes count for up to half the injection, only if on full standby for the life of the loan and documented on SBA Form 155.
- Citizenship & residency: for loans approved on/after Jan 1, 2026 (policy effective March 1, 2026 for nondelegated loans), SBA generally requires owners to be U.S. citizens or nationals, with a limited ~5% allowance. What it means →
- Sellers who keep equity stay on the hook: a seller retaining even 1% must give a full personal guarantee for at least two years, so many deals now require the seller to fully exit.
Rules are changing fast, verify before you structure
SBA policy shifted several times across 2025 to 2026 via procedural and policy notices. We track it on the SBA rule-change tracker, but always confirm the current rule with your lender before you write an offer. Current rates →
The complete SBA loan library
Everything below is a deep-dive guide. Start with the acquisition sub-pillar, then follow the thread you need.
Start here
Down payment & deal structure
Rules, guarantees & 2026 changes
Compare & choose
Two live pages we keep current
Rates move monthly and rules change, these two are updated on a schedule.
Frequently asked questions
A complete change of ownership requires a minimum 10% equity injection under SOP 50 10 8. Up to half of that can be a seller note on full standby, so your own cash could be as low as 5% of the price.
Partially. A seller note counts toward the 10% injection if it's on full standby for the life of the loan (no payments), is no more than 50% of the injection, and is documented on SBA Form 155. See seller notes on standby.
Typically a minimum of 1.15×, with many lenders underwriting to 1.25×. Check any deal with the DSCR calculator.
Most 2026 acquisition loans run ~9.5%, 11.75% variable, WSJ Prime (6.75%) plus a lender spread, capped at Prime + 3.0% on loans over $350,000. See current SBA rates.
Sources
- SBA SOP 50 10 8 and related procedural/policy notices, sba.gov 7(a) program; lender/legal analyses incl. Starfield & Smith, NAGGL, and Live Oak Bank (2025 to 2026).
- Equity injection & seller-note-on-standby rules, SOP 50 10 8 summaries, Windsor Advantage & Pioneer Capital Advisory (2025).
- Rates, WSJ Prime 6.75% (July 2026); SBA maximum-rate structure, lender rate trackers.
