{"ok":true,"canonical_url":"https://dealroom.so/glossary/change-in-ownership","api_url":"https://dealroom.so/api/public/glossary/change-in-ownership","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"change-in-ownership","term":"Change in ownership","group":"Doing the deal","definition":"The transfer of control or a significant portion of a business's equity from one party to another. This is the core event in any business acquisition.","what_it_means":"For an SBA 7(a) loan, a change in ownership is the specific event that triggers the need for SBA financing to acquire an existing business. The SBA has strict rules regarding who can buy, how the deal is structured (asset vs. stock purchase), and how the seller exits. Ensure your deal is structured to meet these requirements.","url":"https://dealroom.so/glossary/change-in-ownership","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"partner-buyout","term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"}],"related_questions":[{"question":"How does the SBA handle a seller's retained ownership in a change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-handle-a-seller-s-retained-ownership-in-a-change-of-ownership-transaction"},{"question":"How does the SBA handle a seller's retained ownership in a 7(a) change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-handle-a-seller-s-retained-ownership-in-a-7-a-change-of-ownership-transac"},{"question":"What specific due diligence is required for seller financing in a change of ownership?","url":"https://dealroom.so/for-lenders/questions/what-specific-due-diligence-is-required-for-seller-financing-in-a-change-of-ownership"},{"question":"How does the SBA evaluate the reasonableness of goodwill in a 7(a) change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-reasonableness-of-goodwill-in-a-7-a-change-of-ownership-tran"},{"question":"How is goodwill valued and underwritten in a change of ownership acquisition for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-is-goodwill-valued-and-underwritten-in-a-change-of-ownership-acquisition-for-a-7-a-loa"},{"question":"What are the minimum requirements for an acceptable business valuation in a 7(a) change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/what-are-the-minimum-requirements-for-an-acceptable-business-valuation-in-a-7-a-change-of-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Change in ownership","url":"https://dealroom.so/glossary/change-in-ownership","source_type":"DealRoom Data"}}