Business Loan Down Payment Requirements by Product Type
Down payment is the single most misunderstood part of the business loan process. Most operators overestimate what's required and underestimate the structures that can substitute equity.
SBA 7(a)
10% equity injection minimum for change-of-ownership and startup loans. Existing business expansion can go 0% down if cash flow supports the debt. Equity can be cash, seller note (with full standby for 24+ months), or even retained earnings reinvested in the prior year.
SBA 504
10% borrower contribution standard, 15% for special-use real estate, 20% for startup + special-use. Bank takes 50%, CDC takes 40%, you bring 10%. Down payment is the gating constraint for many CRE deals.
Equipment financing
0–10% down for established businesses with strong credit. Soft costs (delivery, installation, training) can sometimes be 100% financed. Startups or weaker files: 10–20% down plus first/last payment up front.
Working capital / revenue-based
Zero down. The advance funds in full and repayment starts the next business day.
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