How much business can you afford to buy?
Enter the cash you can put in. The calculator returns the largest purchase price that cash supports, and the share a lender would finance.
Estimate only. SBA 7(a) typically requires a 10% minimum equity injection and caps loans at $5M; actual terms depend on the lender, the business, and your qualifications.
The questions to ask before you make an offer, the documents to request in diligence, and the deal terms worth arguing over. One email, no course.
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How much cash do you need to buy a business?
Most SBA 7(a) acquisition loans require an equity injection of at least 10% of the total project cost. On a $1,000,000 business that is $100,000 of your own money, with the loan covering the rest. The equity injection is the number that sets your ceiling, not your income and not your credit score, which is why buyers with the same salary end up shopping in completely different price brackets.
What counts as your equity injection?
Cash is the cleanest form, but it is not the only one a lender will accept. Lenders look for money that is genuinely at risk and genuinely yours. The common sources, in rough order of how easily they are accepted:
- Personal savings and taxable investment accounts
- Retirement funds rolled in through a ROBS structure
- A gift from a family member, documented as a gift and not a loan
- A seller note on full standby, which many lenders will let cover part of the requirement
Can a seller note reduce the cash you need?
Yes. A seller note on full standby can count toward part of the equity injection, which lowers the cash you bring to closing. Full standby means the seller receives nothing until the SBA loan is paid off. Sellers agree to it more often than buyers expect, because it also signals confidence in the business they are handing over. Terms vary by lender, so confirm the split before you write it into an offer.
What is the largest business an SBA loan can buy?
The SBA 7(a) program caps a single loan at $5 million. With a 10% injection that puts roughly $5.5 million at the top of the range for a purely SBA-financed deal. Above that, buyers combine an SBA loan with a seller note, an equity partner, or conventional debt.
How do you use this number when you shop?
Treat the result as a ceiling, not a target. Working capital, closing costs and the first few months of slower revenue all come out of the same pot. Buyers who spend their entire injection on the purchase price frequently close and then run out of cash. Leave room.
Common questions
Is 10% down always enough to buy a business?
10% is the SBA minimum, not a promise. A lender can ask for more if the business has thin margins, heavy customer concentration, or an owner who is difficult to replace. Plan for 10% to 20% and be pleased if it lands at the bottom of that range.
Does this calculator include working capital?
No. It returns the purchase price your equity supports. Working capital, closing costs, and any inventory purchase are separate, and they are usually the reason a buyer's real budget is smaller than this number suggests.
Can you buy a business with no money down?
Almost never with an SBA loan, because the equity injection is a program requirement. Fully seller-financed deals exist, but they are rare, tend to carry a higher price, and usually come with terms that favour the seller.