What amount of equity is required from the borrower for the SBA 504 loan program?
The minimum equity injection is at least 10 percent of the total project cost. In addition, if the project involves the purchase or construction of a single-purpose facility, the required equity injection increases by five percent. If the business is new (less than two years old), the required equity injection also increases by an additional five percent. Start-up businesses need to be sufficiently capitalized.
