{"ok":true,"canonical_url":"https://dealroom.so/glossary/change-of-ownership-transaction","api_url":"https://dealroom.so/api/public/glossary/change-of-ownership-transaction","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-of-ownership-transaction","term":"Change-of-Ownership Transaction","group":"Doing the deal","definition":"This refers to the purchase of an existing business, where ownership transfers from a seller to a buyer. It's the most common type of SBA 7(a) loan.","what_it_means":"Most SBA 7(a) loans are used for change-of-ownership transactions. The loan funds the purchase price, working capital, and other associated costs. You'll need to clearly delineate assets and liabilities being transferred, typically through an Asset Purchase or Stock Purchase Agreement, and ensure all SBA eligibility requirements are met.","url":"https://dealroom.so/glossary/change-of-ownership-transaction","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"}],"related":[{"slug":"change-of-ownership","term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"},{"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":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"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":"When is a business valuation required for a change of ownership transaction exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-valuation-required-for-a-change-of-ownership-transaction-exceeding-500-"},{"question":"When is a business appraisal required for a change of ownership transaction exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-appraisal-required-for-a-change-of-ownership-transaction-exceeding-500-"},{"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":"What specific documentation is required from the seller for a 7(a) change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-from-the-seller-for-a-7-a-change-of-ownership-tran"}]},"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 Transaction","url":"https://dealroom.so/glossary/change-of-ownership-transaction","source_type":"DealRoom Data"}}