Do you need a down payment for an SBA loan?
Often, yes, but not always, and rarely as much as borrowers fear. SBA 7(a) loans typically require about 10% down for business acquisitions and startups; many other 7(a) uses, like working capital or refinancing, don't carry a standard down payment at all. SBA 504 loans typically require a 10% borrower contribution, rising to 15-20% for special-use properties or startups. Compare that to conventional commercial standards and the SBA injection looks light: it's one of the program's core advantages. The key is knowing your number before you plan the deal, and Quordx Capital gets you that answer fast.
Part of our guide to Business Loans.
Last updated · Reviewed by Cody Dreis
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SBA Down Payment Rules by Program and Purpose
7(a) for acquisitions and startups: ~10%: Buying a business or launching one with 7(a) money typically requires a 10% equity injection from you. On a $1M acquisition, plan for roughly $100K of your own capital in the deal.
7(a) for working capital, equipment, or refinancing: generally no standard down payment: the loan is underwritten on cash flow and the purpose, not an injection.
504: 10% standard: The classic 504 structure has the bank funding 50%, the CDC portion 40%, and you contributing 10%. Special-use properties (think single-purpose buildings) or startup borrowers push the contribution to 15-20%.
Where the injection can come from: your own cash is cleanest. Lenders verify the source, so plan this early rather than at closing.
Why it's worth it: in exchange for that 10%, you access up to $5M (7(a)) or $5.5M (504) at rates of roughly 10.5%-14% variable and 5-7% effective fixed respectively, pricing few small businesses can match elsewhere.
Options If the Down Payment Is the Problem
SBA Express: up to $500K with the same program economics at smaller scale. Best when a smaller loan means a manageable injection.
Equipment financing: $5K-$5M+ with the asset as collateral and minimal cash requirements for established businesses. Best when the purchase is equipment, not a whole company.
Working capital loans: $5K-$500K with nothing down. Best for operational needs that never required an injection anyway.
Business lines of credit: $10K-$250K+ revolving, no down payment. Best for flexible needs while you build acquisition savings.
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How Quordx Capital Works
Tell us the deal, about 5 minutes of questions, and upload your documents once. Our AI matches you with 3-7 lenders from our 50+ network, flagging which SBA-approved lenders fit your structure and exactly what injection each expects. You'll know your down payment number before committing weeks to underwriting; conventional alternatives decide in 24-48 hours if speed wins.
What to Expect
If you don't have the 10% today, expect a realistic plan rather than a polite decline: what to fund now without an injection, and what saving toward the SBA deal unlocks later. Every figure is disclosed before you decide anything, the comparison is free, and nothing obligates you.
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Written by
Cody Dreis
Founder, Quordx Capital
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Quordx Capital is a business funding broker, not a lender. Lenders make every credit decision and set the rate, fees and terms, and not every business qualifies. Quordx may be paid by a lender when a deal funds. Full disclosures