$9 · Instant download · Verified vs SOP 50 10 8
How much you need, and which money counts
The number is the easy part. The part that sinks deals is which of your money the SBA will let you count. Five inputs, and the answer is at the top.
The rule that surprises almost everyone: a seller note counts toward your equity injection only if it is on full standby for the life of the loan, meaning the seller receives no principal and no interest the entire time, and even then it can cover at most half of what you owe. Borrowers routinely structure a note that covers the whole injection, then find out at underwriting that it counts for nothing. This tool applies both limits and tells you the shortfall in dollars.
Built to answer in under a minute. Six inputs at most, already filled in with typical numbers for your industry, and the verdict sits at the top in plain words. The supporting math is underneath if you want to check it, and you never have to open it if you do not.
What it computes
- ✓ Your required injection at 10% of total project cost, the SOP floor on a complete change of ownership
- ✓ How much of your seller note actually counts, after the full-standby test and the half-of-injection cap
- ✓ Whether a documented gift or outside equity closes the gap, and what documented means
- ✓ Your total counted injection against the requirement, with the shortfall or surplus in dollars
- ✓ The amount financed once the injection is settled
- ✓ A plain answer on whether you are there, and the exact thing to fix if you are not
1. Choose your industry
2. Get it
Get the structurer, $9Excel file, instant download after checkout. Formulas open so you can see and defend every number.
Need more than this one answer? The full Will the SBA Fund This Deal kit is $67 right now, normally $97, and includes all of these plus the five-year projections and the lender-ready package. Three separate tools already cost more than that, so if you are weighing three or more, start there instead.
Not ready to purchase?
The free calculators cover the individual pieces: payment, down payment, and guaranty fee. This tool exists because the free calculator gives you the number but does not test whether your specific sources qualify.
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Frequently Asked Questions
How much down payment do you need for an SBA 7(a) business acquisition?
At least 10% of total project cost. SOP 50 10 8 requires a minimum 10% equity injection on a complete change of ownership, and total project cost means the purchase price plus working capital, fees, and closing costs, not the price alone.
Can a seller note count as your SBA down payment?
Only partly. A seller note counts toward the required injection only if it is on full standby for the life of the loan, meaning the seller receives no principal and no interest, and even then it can cover at most half of the required injection.
Can you buy a business with no money down using an SBA loan?
No. Because a standby seller note can cover at most half of the required 10% injection, at least 5% of total project cost has to come from you or a documented outside source. True zero-down SBA acquisitions are not permitted.
Written by Thomas Hartwell, author of the FUNDED series of industry-specific SBA lending guides.