# How much equity injection does an SBA 7(a) loan require?

**Short answer:** It depends on the use. Start-ups must inject at least 10% of total project costs. An Initial Acquisition requires 10%, which cannot be reduced or eliminated. Other existing-business loans have no set SBA percentage. Source: SOP 50 10 8.1, Sec. B, Ch. 1, Para. C.2.b; App. 15, Para. C.2.a.

Canonical page: https://www.sbaexpress.loans/answers/how-much-equity-injection-does-a-7a-loan-require/
Last checked: 2026-11-08

SBA requires at least 10% of total project costs for start-ups and the same percentage for business purchases. Most other 7(a) loans have no fixed SBA percentage.

- **Start-ups on Standard 7(a) and 7(a) Small loans.** The requirement is at least 10% of total project costs. SBA treats a business as a start-up when it has been in operation for 1 year or less (Sec. B, Ch. 1, Para. C.2.b; Ch. 2, Para. C.2.a).
- **Initial Acquisitions.** The minimum is 10%, which cannot be reduced or eliminated (App. 15, Para. C.2.a).
- **Business Expansions and Owner Buyouts.** The same percentage applies, but a lender may reduce or eliminate it if conditions are met (App. 15, Para. C.2.a).
- **employee stock ownership plan (ESOP) purchases.** There is no SBA equity requirement for a loan to an ESOP buying a controlling interest (at least 51%).
- **Other existing-business loans.** The lender, or SBA on non-delegated loans, must find sufficient invested equity. The test looks at the type of business, management experience and market competition (Sec. B, Ch. 1, Para. C.2.b).
- **SBA Express.** Whether to require equity is left to the lender's business judgment (Sec. B, Ch. 2, Para. C.2.b).
- **7(a) Manufacturers' Access to Revolving Credit (MARC).** There is no minimum based on use of proceeds (Sec. B, Ch. 3, Para. C).

SBA calls the minimum an equity injection or applicant contribution. A 504 loan has its own borrower contribution rules (13 CFR § 120.910).

Lenders may ask for more than the SBA minimum, and requirements vary by lender. Ask for the figure and the project cost base it applies to.

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 1, Para. C.2.b (Para. C begins p. 118)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 15, Para. C.2.a (Para. C begins p. 371)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 2, Para. C.2 (Para. C begins p. 127)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 3, Para. C (p. 137)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.910](https://www.ecfr.gov/current/title-13/section-120.910)