{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-buyout","api_url":"https://dealroom.so/api/public/glossary/owner-buyout","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":"owner-buyout","term":"Owner Buyout","group":"Doing the deal","definition":"The purchase of one owner's share of a business by another existing owner. The SBA 7(a) program supports these buyouts under specific conditions.","what_it_means":"For an owner buyout to be eligible for 7(a) financing, the selling owner must fully exit the business, and the buying owner must maintain or gain controlling interest. The loan proceeds are used to pay the seller for their equity. Ensure the transaction meets SBA \"change of ownership\" requirements.","url":"https://dealroom.so/glossary/owner-buyout","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":"change-of-ownership","term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"},{"slug":"partner-buyout","term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"Can cash-out loan proceeds go to the remaining owner in a buyout?","url":"https://dealroom.so/sba-7a/questions/can-cash-out-loan-proceeds-go-to-the-remaining-owner-in-a-buyout"},{"question":"Does the remaining owner have to personally guarantee the SBA loan after a buyout?","url":"https://dealroom.so/sba-7a/questions/does-the-remaining-owner-have-to-personally-guarantee-the-sba-loan-after-a-buyout"},{"question":"How does a partner buyout impact the personal guarantee requirements for the remaining owner?","url":"https://dealroom.so/sba-7a/questions/how-does-a-partner-buyout-impact-the-personal-guarantee-requirements-for-the-remaining-own"},{"question":"How does the SBA handle a partner buyout where the remaining owner's experience is limited?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-handle-a-partner-buyout-where-the-remaining-owner-s-experience-is-limited"},{"question":"How does a partner buyout with an SBA 7(a) loan impact the remaining owner's personal guaranty?","url":"https://dealroom.so/sba-7a/questions/how-does-a-partner-buyout-with-an-sba-7-a-loan-impact-the-remaining-owner-s-personal-guara"},{"question":"Can an SBA 7(a) loan finance a partner buyout?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-a-partner-buyout"}]},"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 — Owner Buyout","url":"https://dealroom.so/glossary/owner-buyout","source_type":"DealRoom Data"}}