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SBA 7(a) Loan Down Payment for Startups: What Counts, What Doesn’t, & How to Plan
Starting a business with SBA 7(a) financing often raises an early question: how much money does the borrower need to bring in? The SBA 7(a) loan down payment for startups is better understood as an equity injection tied to total project cost, not a percentage of the loan. That distinction matters. Cash, previously purchased equipment, partner funds, or gifted funds may all be part of the picture, but they still need to be eligible, clearly sourced, and documented. For CDC Small Business Finance’s SBA 7(a) Community Advantage loan program, the stronger starting point is whether the borrower can prove the funds’ source, project fit, and post-closing liquidity.
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