{"ok":true,"canonical_url":"https://dealroom.so/glossary/partner-buyout","api_url":"https://dealroom.so/api/public/glossary/partner-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":"partner-buyout","term":"Partner buyout","group":"Doing the deal","definition":"The process of one or more partners acquiring the ownership interest of another partner in a business. An SBA 7(a) loan can finance this if specific conditions are met, such as a change of ownership.","what_it_means":"For a partner buyout with an SBA 7(a) loan, the selling partner must completely divest their ownership. The loan proceeds can't go to the business itself, only to the selling partner. Ensure the deal structure clearly separates the buying and selling entities to comply with SBA change of ownership rules.","url":"https://dealroom.so/glossary/partner-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":"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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"For a partner buyout, what if the departing partner also has a non-compete payment?","url":"https://dealroom.so/sba-7a/questions/for-a-partner-buyout-what-if-the-departing-partner-also-has-a-non-compete-payment"},{"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"},{"question":"How does the purchase agreement structure affect an SBA partner buyout?","url":"https://dealroom.so/sba-7a/questions/how-does-the-purchase-agreement-structure-affect-an-sba-partner-buyout"},{"question":"Is member or board consent needed for an SBA partner buyout?","url":"https://dealroom.so/sba-7a/questions/is-member-or-board-consent-needed-for-an-sba-partner-buyout"},{"question":"How does an operating agreement impact an SBA partner buyout loan?","url":"https://dealroom.so/sba-7a/questions/how-does-an-operating-agreement-impact-an-sba-partner-buyout-loan"},{"question":"When is an independent business valuation required for a partner buyout?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-business-valuation-required-for-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 — Partner buyout","url":"https://dealroom.so/glossary/partner-buyout","source_type":"DealRoom Data"}}