Base equity
See the purchase price multiplied by the selected planning equity percentage.
Cash-to-close planning tool
SBA Loan Down Payment Calculator
A down payment is only part of the cash required to buy a business. Model the buyer equity, fees, working capital, reserves, and an eligible seller-note contribution.
Down payment vs. total cashResults firstPlanning estimate
The useful distinction
Down payment is not the same as cash to close.
Professional fees, working capital, and post-close reserves can materially change the amount a buyer needs even when the headline equity percentage looks manageable.
Additional cash
Add fees, buyer-funded working capital, and reserves instead of ignoring them.
Seller-note treatment
Model a contribution only after understanding that lender and SBA treatment must be confirmed.
Methodology
How the cash-needed model works.
The calculator starts with a selected equity percentage, subtracts only the seller-note amount deliberately entered as eligible, then adds all other buyer-funded cash needs.
- Seller notes do not automatically qualify as equity injection; confirm current requirements with a lender.
- Fees, working capital, and reserves are modeled separately so the full cash need stays visible.
- Primary sources: SBA 7(a) loans and SBA SOP 50 10.
Reviewed by: Emporio Partners
This is a planning estimate, not a loan approval, pre-approval, SBA rule determination, or commitment to lend. Actual equity injection, source-of-funds, seller-note, reserve, and fee requirements depend on the transaction and lender underwriting.
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