Saving Up a Down Payment for an SBA Loan
The SBA7a loan, backed by the Small Business Administration , has made it easier for new borrowers and so-called “weak” borrowers to secure the capital that they need to open a small business. But as with most other loans, borrowers still have to be able to come up with a down payment.
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.
How to Save Up a Down Payment for an SBA Loan
Why do you need a down payment if you want the SBA to approve your loan request? Because the SBA considers your personal investment a sign that you’ll be more motivated and careful with the finances of your business, as well as its overall success.