One thought on “How much of a down payment is required for an SBA loan?

  1. Arti says:

    As mentioned before, most SBA loans don’t have a time in business requirement, but lenders who make these loans often do. As a result, the microloan program is considered the default when it comes to SBA loan for startups. A minimum of 10% is common. However, the SBA does not permit a lender to reject an application simply because collateral is not available. Certain SBA loans may require a “down payment” in the form of equity injection. As stated above, lenders generally like to see that you have a few collateral in the event that you default on the loan. Expect a smaller loan to have smaller collateral requirements; loans under $25,000 may not require any at all. How much a lender will require, however, depends on your creditworthiness, ability to repay, revenue, and the loan amount.

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