As of October 2026, not with an SBA loan: a first-time buyer must inject at least 10% of total project costs, and for an Initial Acquisition the lender cannot reduce it. A seller note on full standby and small passive investors can cover up to half of that 10%, so roughly 5% of project costs still has to come from other sources, which for most buyers means their own cash. Deals with 100% seller financing do happen outside the SBA, but they are rare, and my view is that a no-money-down deal at a good price is unlikely.
Much of the "no money down" content online describes SBA rules from before June 2025. Those rules allowed structures where the buyer put in little or nothing. That approach is gone.
The 10% is measured on total project costs: purchase price plus working capital, fees and closing costs. It is not 10% of the price alone.
SOP 50 10 8.1 lets three "limited sources" fund part of the injection: a seller note on full standby, other standby debt, and passive minority investors who together hold under 20%. Together they can supply no more than half of the required injection.
Worked example: a $2.5 million project
Even the 5% version has costs:
Outside the SBA, a seller can finance the whole price. The market data shows how rare that is:
A seller who accepts no cash at closing is taking all of the risk that you run the business well. Sellers usually ask for something in return: a higher price, a higher rate, or a business that a bank would not finance. The question to ask is why this seller cannot get cash from a bank-financed buyer.
Worked example: 100% seller note on the median business
Zero down on short seller terms can leave the owner working for less than an employee would earn. A longer note lowers the payment, but the seller has to accept waiting longer for the money.
For an existing owner, the SBA injection can go below 10%. Under SOP 50 10 8.1, an existing business buying another business can qualify as a Business Expansion. In that category the lender may reduce or waive the injection if the borrower shows strong liquidity and positive net worth. Lenders typically look for the same or a related industry and two full fiscal years under current ownership. There is no reduction in full personal guarantors. See Can I use an SBA loan to buy a second business?
The honest version of "low money down" is this: about 5% of project costs from you on an SBA deal with a willing seller, or a reduced injection if you already own a qualifying business.
Where these numbers come from: SBA rules are from SBA SOP 50 10 8 and SOP 50 10 8.1 as summarized by Beancount, Cantrell Law, FunderIntel and Starfield & Smith. Seller-financing listing data is from BigIdeasDB. Cash at closing is from the IBBA Market Pulse Q2 2026. Median price and cash flow are BizBuySell data via Beancount. Confirm current terms with an SBA lender. SOP 50 10 8.1 applies to loans that receive an SBA loan number on or after October 1, 2026 (SBA Information Notice 5000-880695).
Not on an SBA loan. As of October 2026, a seller note can count toward the injection only if it is on full standby, and limited sources together can cover at most half of the 10%. On a $2.5 million project, that caps the seller's share at $125,000.
A ROBS structure lets you invest pre-tax retirement funds in your own business. It needs roughly $60,000 or more of rollable funds and a C-corp. See Can I use my 401(k) to buy a business (ROBS)?
Not in an SBA deal, because SBA rules prohibit seller earnouts. In non-SBA deals earnouts are common, but data from SRS Acquiom shows only 63% pay in full.
No. But the seller is carrying all the risk, so check why. Test whether the business would pass a bank's 1.25x coverage test at the price you are paying.
If no money down is off the table, the useful question is how to build the capital stack: How do you finance buying a business?
Meraki Dealmakers is a service of Meraki Partners, LLC, an advisory firm. It is not a broker-dealer, investment adviser, business broker, law firm or accounting firm. This article is general information, not legal, tax or investment advice.
Start with the playbook. The first conversation is free.
Meraki Dealmakers is a service of Meraki Partners, LLC.
Meraki Partners, LLC is an advisory firm. It is not a broker-dealer, investment adviser, business broker, law firm or accounting firm, and does not solicit investors or receive compensation based on capital raised.
© 2026 Meraki Partners, LLC