SBA Data · Verified against SOP 50 10 8 + 13 CFR 120 · 2026
SBA Business-Acquisition Financing Benchmarks (2026)
Every number a buyer, broker, or lender needs to size an SBA 7(a) acquisition, in one citable place. Each figure is tied to its primary source. Free to cite with attribution to Hartwell Labs.
For a 2026 SBA 7(a) business acquisition, the borrower must inject at least 10% of total project cost, the deal must clear the SBA's coverage tests, 1.15x on the business for a loan over $350k and 1:1 on a global basis (lenders typically want 1.25x), the upfront guaranty fee runs 2% to 3.75% of the guaranteed portion depending on loan size, and the maximum 7(a) loan is $5,000,000. A seller note counts toward the injection only on full standby and only up to half of the required injection.
| Source | How it counts |
|---|---|
| Minimum injection | 10% of total project cost (price + working capital + fees) |
| Buyer cash | Counts in full; must be seasoned and source-documented |
| Gift funds | Count in full; source documented (not a disguised loan) |
| Retirement rollover (ROBS) | Counts in full via a compliant ROBS structure |
| Seller note | Counts ONLY on full standby for the life of the loan (Form 155), and at most HALF the required injection |
| Seller note with payments | Counts zero toward injection |
Source: SBA SOP 50 10 8, Section B, Ch. 1
Source: SOP 50 10 8; SBA Form 155
| DSCR | What it means |
|---|---|
| Below 1:1 | Below the SBA global floor, decline territory as structured |
| 1:1 | SBA global minimum (SOP 50 10 8); business cash flow must also clear 1.15x on a loan over $350k |
| 1.25x | The comfort level most lenders underwrite to |
| 1.50x+ | Strong; clears conservative credit committees |
Source: SBA SOP 50 10 8 Section B, Chapter 1
| Gross loan amount | SBA guaranty | Upfront fee (of guaranteed portion) |
|---|---|---|
| $25,000 – $150,000 | 85% | 2.0% |
| $150,001 – $700,000 | 75% | 3.0% |
| $700,001 – $5,000,000 | 75% | 3.5% to $1M guaranteed + 3.75% above |
Source: SBA Procedural Notice 5000-872051 (FY2026 fee schedule)
| Asset | Counted at |
|---|---|
| Commercial real estate | Equity = fair market value − prior liens (no lien required if equity < 25% of value) |
| New machinery & equipment | 75% of purchase price |
| Used machinery & equipment | 50% of net book value (or 80% of an orderly-liquidation appraisal) |
| Furniture & fixtures | 10% of net book value |
| Inventory & receivables (trading assets) | 10% of book value |
Source: SBA SOP 50 10 8, Section B, Ch. 1 (collateral valuation)
Source: SBA SOP 50 10 8
Methodology & sources
Every figure on this page is drawn directly from primary SBA sources, not secondary summaries or broker folklore. The controlling documents are the SBA Standard Operating Procedure SOP 50 10 8 (effective June 1, 2025), 13 CFR Part 120, and the current SBA Procedural Notices that amend them, including the 2026 sunset of the SBSS score for 7(a) Small Loans (which set a 1.10x floor for loans of $350k or less), the FY2026 guaranty-fee schedule, and the citizenship eligibility change effective March 1, 2026. Figures are reviewed against each new Procedural Notice.
This is educational reference data, not lending advice; an individual lender's credit policy may be more conservative than these SBA minimums. Last verified July 2026.
Written by Thomas Hartwell, author of the FUNDED series of industry-specific SBA lending guides.
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These figures are free to cite and republish with attribution. Journalists, advisors, and lenders: copy whichever format you need. If you want a specific number checked or expanded for a story, the methodology and primary sources are listed above.
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Published July 24, 2026. Reviewed against each new SBA Procedural Notice, if you are citing a figure, link the page rather than copying the number so your readers get the current one.
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