SBA Data · Verified against SOP 50 10 8.1 + 13 CFR 120 · Updated October 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.
Under SBA SOP 50 10 8.1 (effective October 1, 2026), a first-time buyer of a business must inject at least 10% of total project cost (not waivable), and the business must cover its post-closing debt at least 1.25x on the seller's last full fiscal year or 2-year average, with a 1:1 global floor; projections can't be used to meet it. The acquisition loan amortizes over no more than 10 years (real estate portion up to 25), total debt can't exceed the independent business valuation, and a Quality of Earnings report is required at a business price of $3 million or more. The FY2027 upfront guaranty fee runs 2% to 3.75% of the guaranteed portion (0% on loans of $700,000 or less to manufacturers, listed food-supply-chain businesses, and rural businesses), and the maximum 7(a) loan is $5,000,000. A full-standby seller note and minority investors together can cover no more than half of the required injection.
| Source | How it counts |
|---|---|
| Minimum injection | 10% of total project cost (price + working capital + fees); cannot be reduced or waived for a first-time buyer (Initial Acquisition) |
| Buyer cash | Counts in full; must be seasoned and source-documented |
| Gift funds | Count in full; source documented (not a disguised loan) |
| Personal loan to a guarantor | Counts in full only if repaid from a source other than business cash flow (owner salary doesn't count) |
| Retirement rollover (ROBS) | Not listed separately in Appendix 15; confirm how your lender treats it |
| Seller note | Counts ONLY on full standby for the life of the loan (Form 155; no principal or interest, interest may accrue) |
| Minority investor (<20%, no control) | Counts, but no repayment before the guaranty is released |
| Limited-source cap | Full-standby seller notes and minority investors COMBINED can cover at most HALF the required injection |
| Seller note with payments | Counts zero toward injection; its payments count in the DSCR test and against the valuation debt cap |
Source: SBA SOP 50 10 8.1, Appendix 15
Source: SOP 50 10 8.1, Appendix 15; SBA Form 155
| DSCR | What it means |
|---|---|
| 1.25x business | SBA floor for a first-time buyer (Initial Acquisition) and owner buyouts; projections can't be used to meet it (narrow special purpose property exception) |
| 1.15x business | SBA floor for a Business Expansion (an owner of 2+ years buying a same-industry business) |
| 1:1 global | SBA global minimum across the business and the household; below it is decline territory as structured |
| 1.50x+ | Strong; clears conservative credit committees |
Source: SBA SOP 50 10 8.1, Appendix 15
| Gross loan amount | SBA guaranty | Upfront fee (of guaranteed portion) |
|---|---|---|
| Up to $150,000 | 85% | 2.0% |
| $150,001 to $700,000 | 75% | 3.0% |
| $700,001 to $5,000,000 | 75% | 3.5% to $1M guaranteed + 3.75% above |
Source: SBA Information Notice 5000-881797 (FY2027 7(a) fees)
| Asset | Counted at |
|---|---|
| Improved real estate | Up to 85% of market value, minus prior liens (unimproved land 50%) |
| Personal real estate (shortfall) | Available 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; a lien is mandatory on a business purchase |
Source: SBA SOP 50 10 8.1, Appendix 15 and Appendix 19 (collateral valuation)
Source: SBA SOP 50 10 8.1, Appendix 19
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 8.1 (effective October 1, 2026, replacing SOP 50 10 8), 13 CFR Part 120, and the FY2027 fee notices (SBA Information Notices 5000-881797 for 7(a) and 5000-881796 for 504). SOP 50 10 8.1 also codifies the citizenship eligibility change that took effect March 1, 2026. Figures are reviewed against each new SBA 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 October 2026.
Written by Thomas Hartwell, author of the FUNDED series of industry-specific SBA lending guides.
Cite this page
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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