Glossary · Your money in the deal
Down payment
In short
The portion of the business purchase price you pay upfront in cash, not financed by the loan. This demonstrates your commitment and reduces the lender's risk.
What it means in a deal
For an SBA 7(a) loan, the standard minimum down payment (equity injection) is 10-15% of the total project cost, but it can be higher depending on the business. Ensure your funds are "seasoned" (in your account for at least 90 days) or properly documented as a gift or from a sale of an asset.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Down payment
- What counts as "my own money" for the down payment?
- Can an investor fund my SBA 7(a) down payment?
- Is my equity injection (down payment) always required to be cash?
- What if my down payment funds are transferred from an international account?
- Can a credit card cash advance be used for my down payment?
- Does a loan from a relative count towards my required down payment?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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