How much down payment does each type of financing want?

There is no single number, because the down payment is a function of what secures the loan rather than of the lender's mood. The rule underneath all of it is simple: the more a lender can recover by selling the collateral, the less of your own cash it needs to see in the deal.

• SBA 7(a) working capital: nothing down; SBA 7(a) acquisition or start-up: a 10% equity injection minimum
• SBA 504 owner-occupied real estate: commonly 10%, more for special-purpose property or a new business
• Commercial Real Estate Loans, conventional: 20% to 30%
• Equipment Financing: zero to 20%, often just a first payment on strong credit
• Business Term Loans, Working Capital Loans, and a Business Line of Credit: nothing down, with personal guarantees and covenants instead

Two cautions. The number quoted is rarely the number you need at closing — add appraisal, environmental reports on property, legal fees, and the guaranty fee, which on a $1 million 7(a) is not trivial even when financed. And a lender asking for nothing down is charging for that somewhere else, usually in rate, term, or an uncapped personal guarantee.

Budget the injection plus roughly 2% to 5% of the loan amount for closing costs, and keep a separate operating reserve on top: funding the purchase and starving the business afterward is a common and entirely avoidable mistake. Call the desk with your use of funds and we will give you a realistic cash-to-close.