{"ok":true,"canonical_url":"https://dealroom.so/glossary/partial-buyout","api_url":"https://dealroom.so/api/public/glossary/partial-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":"partial-buyout","term":"Partial buyout","group":"Doing the deal","definition":"A transaction where you purchase only a portion of a business, often alongside other owners. This means you won't own 100% and will share control and profits.","what_it_means":"In a partial buyout, the SBA 7(a) loan can finance your share, but the seller must reduce their ownership stake to 20% or less to avoid affiliation rules. You need to clarify roles, responsibilities, and profit distribution with other owners early on.","url":"https://dealroom.so/glossary/partial-buyout","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":"partner-buyout","term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"}],"related_questions":[{"question":"Is a partner buyout a complete or partial change of ownership for the SBA?","url":"https://dealroom.so/sba-7a/questions/is-a-partner-buyout-a-complete-or-partial-change-of-ownership-for-the-sba"},{"question":"Can an SBA 7(a) loan finance a partial buyout where the seller retains a minority stake?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-a-partial-buyout-where-the-seller-retains-a-minority-stake"},{"question":"Can a 7(a) loan finance a partial buyout where the seller retains a minority stake and remains active?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-finance-a-partial-buyout-where-the-seller-retains-a-minority-stake-and-rema"},{"question":"When does the SBA permit a 7(a) loan to finance a partial buyout where the seller retains a significant ownership stake?","url":"https://dealroom.so/for-lenders/questions/when-does-the-sba-permit-a-7-a-loan-to-finance-a-partial-buyout-where-the-seller-retains-a"},{"question":"How does partial standby treatment affect a seller's note for eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-partial-standby-treatment-affect-a-seller-s-note-for-eligibility"},{"question":"Can a seller note on partial standby count towards the required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-on-partial-standby-count-towards-the-required-equity-injection"}]},"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 — Partial buyout","url":"https://dealroom.so/glossary/partial-buyout","source_type":"DealRoom Data"}}