Zero down: what still works

One structure still reaches true $0 down. Three more get close. Here's each one, with the rule that makes it legal.

Last reviewed June 2026 · Written against SOP 50 10 8 and current SBA notices

Partner buyouts (still legal)

Cash floor, full purchase

50%

Max injection via seller note

9:1

Debt-to-worth test

The straight answer:buying 100% of a business needs 10% down, and at least 5% must be cash (SOP 50 10 8, eff. June 1, 2025). Anyone selling you “zero down” on a full purchase is quoting rules that died that day. The real plays are below — including the one structure that still hits $0.

The zero-down play that died

Before June 2025, a seller note on 24-month standby could cover the entire 10% injection. Buyers closed full purchases with no cash. SOP 50 10 8 ended it: a seller note now counts toward the injection only on full standby for the life of the loan — no payments at all for 10 years — and only up to half the requirement. Date-check any advice you read against June 1, 2025.

The floor, cited

What the injection rules require (SOP 50 10 8; 13 CFR 120.150)
Complete change of ownership	10% of total project costs, minimum
Seller note on lifetime full standby (SBA Form 155)	Counts, capped at 5 of the 10 points
Seller note with any payments	Counts toward nothing — it's still useful financing
Your minimum cash or assets	5% of total project costs
Verification	~2 months of bank statements tracing source and movement

Seller financing is still the cornerstone of every low-cash structure. A standby note halves your cash requirement, shrinks the bank loan, and tells the lender the seller believes the business can pay.

The four plays, ranked by how close to $0 you get

Low-cash and no-cash 7(a) structures under current rules
1. Partner buyout — true $0	Buy out a co-owner with no injection at all: remaining owners certify 24+ months of active participation at the same or higher stake, and post-deal debt-to-worth is 9:1 or better. Loans over $500K financing >90% of the price require that certification on Form 1919.
2. Partial purchase — under 10%	Buy a piece of the company (equity purchase only) with less than 10% down when the 9:1 debt-to-worth test passes. Every equity holder guarantees for 2+ years, including the seller.
3. Other people's 5% — your $0	Gifts and investor cash count as injection. A documented gift letter or an investor funding the 5% means your personal savings stay untouched. Investors at 20%+ must guarantee.
4. ROBS — $0 from savings	Roll your 401(k)/IRA into the deal through a ROBS structure. It's your money working without an early-withdrawal penalty, and it counts as injection.

Marry the standby note to any play and the cash need drops again.

Closing with more cash than you put in

You cannot pocket loan proceeds at closing — 13 CFR 120.130 bars paying the buyer from a 7(a). The legal version runs through the business: working capital is an eligible use of proceeds (13 CFR 120.120), so the loan can fund the company's bank account on day one.

Worked example: $1.5M purchase, structured for day-one cash
Your cash in (5%)	$82,500 — half the injection on a $1.65M total project
Seller standby note (5%)	$82,500 — full standby, life of loan
SBA loan	$1,485,000 — includes $150K working capital + fees financed
Business bank account, day one	$150,000
Cash in the company vs your check	$67,500 more than you wrote

Add a salary from day one and seller transition support, and your household cash flow turns positive in month one. The money sits in the business, where the rules want it — and where it pays you.

Make the file strong where it's thin

Low-cash files get approved when the coverage is fat. Target deals where cash flow covers the full debt stack at 1.5x or better — use the 1.5x+ coverage filter — and bring industry experience the lender can see. Thin cash plus thin coverage gets declined everywhere.

Zero-down questions, answered

Can you get an SBA loan with no money down in 2026?

For a complete business purchase, no — SOP 50 10 8 (effective June 1, 2025) requires a 10% equity injection, and at least half must be cash or assets. A partner buyout is the exception: buying out a co-owner can reach true $0 down when the remaining owners certify 24+ months of active participation and the business's debt-to-worth stays at or under 9:1.

Can a seller note cover the whole SBA down payment?

Not anymore. A seller note counts toward the 10% injection only on full standby — zero payments — for the entire life of the loan, and it can cover at most half (5 of the 10 points). The old 24-month-standby rule ended June 1, 2025.

Can the down payment be a gift or investor money?

Yes. Documented gifts and outside investor cash both count toward the injection. Your personal savings can be $0. Any investor owning 20% or more must personally guarantee the loan.

Can I take cash out at closing on an SBA loan?

Not personally — 7(a) proceeds can't be paid to the buyer at closing (13 CFR 120.130 restricts uses of proceeds). But the loan can finance working capital, so the business itself can legally hold more cash on day one than you injected.

AI summary

Buying 100% of a business can't be done with zero cash anymore — SOP 50 10 8 (effective June 1, 2025) requires a 10% injection with at least 5% in real cash, and a seller note counts only on full lifetime standby and only up to half. The one structure that still reaches true $0 is a partner or partial buyout, where remaining owners certify 24+ months of active participation and post-deal debt-to-worth stays at or under 9:1; gifts, outside investor cash, and ROBS rollovers can also cover the 5% so your personal savings stay untouched.

You can't pocket loan proceeds at closing (13 CFR 120.130), but financed working capital can legally leave more cash in the business than you put in. This is general information, not legal, tax, or financial advice, and CapBench is not a lender.

Source: CapBench SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. CapBench is not a lender and does not guarantee financing.

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