The SBA down payment,
explained.
“As little as 10% down” is the headline every owner hears. It is real - for the right project. Here is how the injection rules actually work.
By Christiaan De Leeuw · Stonehaven Lending · Updated July 30, 2026
On an SBA 504 project, an established business buying a general-purpose building injects 10% of total project cost. The injection rises by 5% if the building is special-purpose, and by 5% if the business is under two years old - so a young business in a special-purpose property injects 20%. On 7(a), equity is set by the lender within SBA rules and varies with what the loan funds. Compare that to conventional commercial loans, where equity requirements are typically materially higher.
The 10 / 15 / 20 matrix.
The 504 injection is structural, not negotiable charm: 10% baseline; +5% for a special-purpose property - buildings that suit one use, like hotels, car washes, gas stations, or bowling alleys; +5% for a new business, generally meaning under two years of operating history. The additions stack to a 20% cap. Everything else in the project - roughly 50% from the bank, the remainder from the CDC portion - reshapes itself around your injection.
Where the injection can come from.
Cash is the obvious source, but it is not the only one. Depending on the deal and the lender's reading of program rules, equity in land you already own that is part of the project, or documented borrowed funds serviced from outside the business, may count toward injection. Every source needs a paper trail - underwriting will want to see where the money originated and that it is not a disguised loan the business must repay.
It is 10% of more than the price.
The injection applies to total project cost, not just the purchase price - construction, eligible soft costs, and certain fees ride along in the project. That cuts both ways: your 10% is calculated on a bigger number, but those costs are being financed at 90% rather than paid out of pocket. Model your own project in the SBA loan calculator to see the actual dollars.
What can move the number.
Lender overlays, collateral findings, or eligibility issues can require more equity than the program minimums - the matrix is the floor the program allows, not a promise every deal achieves. The way to find your real number is to put the deal in front of someone who arranges these structures: it costs fifteen minutes and no credit pull.
Find out what your project would actually require.
A specialist reads your project against the injection rules and current lender expectations - honestly, within one business day.