{"ok":true,"canonical_url":"https://dealroom.so/glossary/change-of-ownership-loan","api_url":"https://dealroom.so/api/public/glossary/change-of-ownership-loan","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-16","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"change-of-ownership-loan","term":"Change-of-ownership loan","group":"The loan itself","definition":"An SBA 7(a) loan specifically designed to finance the purchase of an existing business. This is the primary type of loan buyers use to acquire small businesses.","what_it_means":"This loan type covers the acquisition of a business, including goodwill, working capital, and sometimes real estate. The SBA has specific requirements for these transactions, such as seller financing and equity injection. Ensure your lender is experienced with these complex deals.","url":"https://dealroom.so/glossary/change-of-ownership-loan","official_sources":[{"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"},{"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"}],"related":[{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"}],"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 define \"change of ownership\" for eligibility and loan structuring purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-change-of-ownership-for-eligibility-and-loan-structuring-purposes"},{"question":"When is a business valuation required for a change-of-ownership 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-valuation-required-for-a-change-of-ownership-7-a-loan"},{"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":"When is an independent business valuation mandatory for a 7(a) change of ownership loan?","url":"https://dealroom.so/for-lenders/questions/when-is-an-independent-business-valuation-mandatory-for-a-7-a-change-of-ownership-loan"},{"question":"When is a business valuation specifically required for a change-of-ownership 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-valuation-specifically-required-for-a-change-of-ownership-7-a-loan"}]},"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-of-ownership loan","url":"https://dealroom.so/glossary/change-of-ownership-loan","source_type":"DealRoom Data"}}