Both SBA 7(a) loan and 504 loan applicants are subject to what is called the "Personal Resources Test."
Does applicant personally have cash that can be used in the lieu of the loan?
If the total financing package:
(1) Is $250,000 or less, the exemption is two times the total financing package or $100,000, whichever is greater;
(2) Is between $250,001 and $500,000, the exemption is one and one-half times the total financing package or $500,000, whichever is greater; or
(3) Exceeds $500,000, the exemption is one times the total financing package or $750,000, whichever is greater.
Total financing package is the total project cost. It typically is the sum of the loan amount and borrower's injection.