June 20

SBA 7(a) Business Acquisition Loans -How Much Equity is Required?


How Much Equity is Required for an SBA 7(a) Business Acquisition Loan?

In this video, Beau explains how much equity is required when applying for an SBA 7(a) business acquisition loan.

What is the minimum equity investment for new owners of a business?

The SBA requires a 10% equity injection from the new owner when the purchase entails a complete change of ownership, based on the total of all costs included in the transaction.

It's worth noting that seller debt can only be counted as part of the equity injection if it accounts for 50% or less of the total equity injection and is completely subordinated for the term of the SBA-backed loan.


commercial loans, creative financing, hard money, real estate, real estate investing

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