Tap to get financing
SBA 7(a) Loans
SBA 7(a) Loans
Uses for the SBA 7(a) LoanCompare SBA LoansFund a StartupBuy EquipmentGet a Commercial MortgageRepair CapitalRefinance Business DebtGet a Working Capital LoanBuy a BusinessLearn About the SBA Lending ProcessFind an SBA Lender
Requirements Rates Loan Calculator
SBA Tools
SBA 7(a) Loan CalculatorSBA 504 Loan Calculator
Blog
About Us
About usContact us
Get financing
Close sba7a.loans is an independently owned and operated website and has no government affiliation. We are not the Small Business Administration and are not a lender. If you are trying to reach the SBA click here to be redirected.
Newly Published
Oct 27 at SBA 7(a) Loans
Small Business Loans Guide: Before You Start
Aug 26 at SBA 7(a) Loans
Who Are Specialized Lenders in the SBA 7(a) Loan Program?
Aug 26 at SBA 7(a) Loans
Writing a Proposal for the SBA 7(a) Loan
Explore the Janover Network
Mar 27 at Multifamily Loans
How to Navigate Multifamily Tax Credits
Mar 27 at Multifamily Loans
Multifamily Minute Reader Reflections: Interest Rate Outlooks
Mar 24 at Multifamily Loans
The Best 3 Multifamily Loans for Affordable Housing in 2023
Was This Article Helpful?
Small Business and SBA Lending Blog
Last updated on Feb 19, 2023
3 min read

How Much is the SBA 7(a) Down Payment?

SBA 7(a) loan downpayment is lower than a standard business loan. If you qualify, you may pay as little as 5 or 10% down, depending on the lender’s policies, purpose of the loan, amount borrowed, your credit history, and more. 

Apply for a loan in minutes and get multiple quotes today → Get Quotes

In this article:
  1. SBA 7(a) Loan Basics
  2. SBA 7(a) Loan Guarantees
  3. Minimum SBA 7(a) Downpayment Amounts
  4. Qualify for the Lowest SBA 7(a) Down Payment for your Situation
  5. Required Documents for a Business Loan
  6. Related Questions
  7. Get Financing

If you’re looking at taking out a business loan, one of the things you’re naturally curious about is whether the lender will require you to make a down payment as part of the deal. The answer depends on a number of factors, including the purpose of the loan and your credit history. The good news is that SBA 7(a) loans often allow borrowers to arrange lower down payments than they would need with a standard business loan. 

SBA 7(a) Loan Basics

U.S. Small Business Administration (SBA) 7(a) loans exist to give business owners an option when they’re unable to arrange financing through private sources. Requirements for some SBA 7(a) loans are less stringent than standard business loans. Business owners can also borrow smaller amounts than banks would normally be willing to lend in other circumstances. 

Under the 7(a) loan program, the SBA doesn’t lend money to business owners directly. Instead, it helps business owners prepare loan applications for lenders on the front end of loan applications. The SBA also guarantees loans up to certain maximums, which helps entrepreneurs get financing to start a new business, expand their existing one, buy equipment, or obtain working capital and inventory. 

SBA 7(a) Loan Guarantees

The SBA guarantees business loans as follows:

  • Five million dollars or 75% of the loan amount, whichever amount is less.

  • Small loans of less than $150,000 are guaranteed up to 85% of the loan amount, which is $127,500.

This extra layer of protection in case of default means that the rules around SBA 7(a) down payments and other SBA loan terms are more relaxed than for other types of business loans. 

Minimum SBA 7(a) Downpayment Amounts

One of the advantages of getting this type of business financing is the low down payment requirement. It is possible to arrange a commercial business loan with as little as 5% down. A 10% down payment for an SBA 7(a) loan is much more common for borrowers.

Qualify for the Lowest SBA 7(a) Down Payment for your Situation

When you are approaching for a bank loan for your business, you’ll want to keep the Boy Scout motto, “be prepared,” in mind. You’ll want to make sure that your application is complete. Missing documents will only cause delays. 

Required Documents for a Business Loan

The following is a general list of documents required when applying for a business loan. Be sure to check with your lender to find out whether there is anything else required for your SBA loan application.

  • Federal tax returns (last three years)

  • Owner’s and partner’s, if any, personal income tax returns (last three years)

  • Year-end and year-to-date financial statements

  • Business plan

You can’t change less-than-favorable aspects of your loan application, such as blemishes on your credit history, but you can be direct about what happened in the past, what you learned from it, and what your plans are moving forward. Check this article to know How to Fill Out Paperwork for the SBA 7(a) Loan

WE’RE HERE TO HELP YOU GET THE COMMERCIAL FINANCING YOU NEED. CONTACT SBA7(A).LOANS TODAY TO ARRANGE YOUR RISK-FREE, PERSONAL CONSULTATION OR SIMPLY CLICK THE BUTTON BELOW TO APPLY!

Related Questions

What is the minimum down payment for an SBA 7(a) loan?

The minimum down payment for an SBA 7(a) loan is 5%. For loans of less than $150,000, the SBA guarantees up to 85% of the loan amount, which is $127,500.

For more information, please see this page.

What are the requirements for an SBA 7(a) loan?

The SBA 7(a) loan has the following requirements:

  • Your business must operate for profit. Nonprofits and not-for-profit businesses are not eligible.
  • You must also have some equity in the business — this could mean you already have a profitable business, or you could use your own personal equity as collateral.
  • If you have any alternative financial resources, you must have used them first. For example, if you have a personal savings account or are able to get a personal loan, then you must first pursue those options before applying for an SBA 7(a) loan.
  • The business owner cannot be on parole.
  • You must be doing business in the U.S. or its territories.
  • A maximum loan amount of $5 million with no minimum loan amount (most loans, however, are $30,000 or more).
  • The business must meet the SBA's size standards for its particular industry.
  • The business must have fewer than 500 employees and less than $7.5 million in revenue each year for the previous three years.
  • The business must physically be based in the U.S. and operate within the U.S. and its territories.
  • Business owners must first have used other sources of financing, including personal funds, in order to qualify.
  • Businesses must not be involved in lending, real estate, or speculation.

What are the advantages of an SBA 7(a) loan?

The advantages of an SBA 7(a) loan include:

  • Highly competitive, low interest rates
  • Long loan terms, up to 25 years
  • Fixed and variable-rate options are available
  • A variety of businesses are eligible
  • Low down payments, typically around 10-20%
  • Variety of loan options, including SBA 7(a) express loans, SBA 7(a) CAPLines
  • Most SBA loans, including 7(a) loans are fully amortizing, meaning borrowers don’t have to worry about balloon payments

How long does it take to get approved for an SBA 7(a) loan?

The length of time it takes to get approved for an SBA 7(a) loan depends on the type of loan processing used. Standard 7(a) loan processing takes between 7-10 business days, while Certified Lenders Program (CLP) processing takes only 3 business days.

For more information, please see the following sources:

  • How Long Does it Take to Approve an SBA 7(a) Loan?
  • How to Fill Out Paperwork for the SBA 7(a) Loan

What are the eligibility requirements for an SBA 7(a) loan?

The eligibility requirements for an SBA 7(a) loan include:

  • The business must meet the SBA's size standards for its particular industry.
  • The business must have fewer than 500 employees and less than $7.5 million in revenue each year for the previous three years.
  • The business must physically be based in the U.S. and operate within the U.S. and its territories.
  • The business must operate for profit.
  • Business owners must first have used other sources of financing, including personal funds, in order to qualify.
  • Businesses must not be involved in lending, real estate, or speculation.
  • Your business must operate for profit. Nonprofits and not-for-profit businesses are not eligible.
  • You must also have some equity in the business — this could mean you already have a profitable business, or you could use your own personal equity as collateral.
  • If you have any alternative financial resources, you must have used them first. For example, if you have a personal savings account or are able to get a personal loan, then you must first pursue those options before applying for an SBA 7(a) loan.
  • The business owner cannot be on parole.
  • You must be doing business in the U.S. or its territories.
In this article:
  1. SBA 7(a) Loan Basics
  2. SBA 7(a) Loan Guarantees
  3. Minimum SBA 7(a) Downpayment Amounts
  4. Qualify for the Lowest SBA 7(a) Down Payment for your Situation
  5. Required Documents for a Business Loan
  6. Related questions
  7. Get Financing
Tags
  • SBA 7(a) Loans
  • Downpayment
  • Small Business Financing

Getting a small business loan should be easy.⁠ Now it is.

Click below for a free, no obligation quote and to learn more about your loan options.

Get financing →
Janover logo

SBA 7(a) Loans is a Janover company. Please visit some of our family of sites at: Multifamily Loans, Multifamily Today, Commercial Real Estate Loans, SBA7a Loans, CMBS Loans, Apartment Loans, HUD Loans, HUD 221d4 Loan, HUD 232 Loan, HUD 223f Loan, HUD 223a7 Loan, SBA Express Loans, SBA 504 Loans, and OpportunityZones Help.

Janover Inc.

6401 Congress Ave
Ste 250
Boca Raton FL 33487

hello@sba7a.loans

SBA 7(a) Loans

SBA Loan Comparison
SBA 7(a) Loan Fees, Rates, and Terms
Qualifying for an SBA 7(a) Loan
SBA Loan Guides per State

Site Information

Privacy Policy
Terms of Use
Advertiser Disclosure

This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. We are a technology company that uses software and experience to bring lenders and borrowers together.

All users should perform their own due diligence and research. Nothing on this website is an offer or a solicitation for a loan. This website does not endorse or charge you for any service or product. None of the information on this site constitutes legal advice. We are not affiliated with the Small Business Administration (SBA). If you need to visit the SBA directly please click here: sba.gov

Click here for our Advertiser Disclosure.

Copyright © 2023 Janover Inc. All rights reserved.