{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-a-partner-buyout-be-done-with-zero-money-down-under-the-sba","api_url":"https://dealroom.so/api/public/questions/can-a-partner-buyout-be-done-with-zero-money-down-under-the-sba","question":"Can a partner buyout be done with zero money down under the SBA?","topic":"Partner & owner buyout","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, a partner buyout can be structured with zero equity injection under specific SBA conditions for existing owners.","rule":"A 0% equity injection is permitted for an existing owner buying out a partner if the remaining owner has been active in the business and held ownership for at least the past 24 months. Additionally, the business's pro forma debt-to-worth ratio must be no greater than 9:1 after the transaction. If these conditions are not met, a 10% equity injection is required.","example":"Maria, an active 40% owner for three years, wants to buy out her partner's 60% share of their $750,000 business. If the company's debt-to-worth ratio will be 8:1 post-buyout, she could potentially secure a $750,000 SBA 7(a) loan with zero equity injection.","what_lenders_check":"Lenders rigorously verify the remaining owner's active status and 24-month ownership history. They also meticulously calculate the pro forma debt-to-worth ratio to ensure it strictly adheres to the 9:1 maximum for a 0% equity injection.","required_facts":["0% injection possible","Active owner 24+ months","Debt-to-worth 9:1","Specific conditions apply"],"source_families":["SOP 50 10 — Lender and Development Company Loan Programs","13 CFR Part 120 — Business Loans"],"official_sources":[{"title":"SOP 50 10 — Lender and Development Company Loan Programs","url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs"},{"title":"13 CFR Part 120 — Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"Can I buy out my business partner with an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-i-buy-out-my-business-partner-with-an-sba-7-a-loan"},{"question":"What is the 24-month ownership rule for a $0-down SBA partner buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-24-month-ownership-rule-for-a-0-down-sba-partner-buyout"},{"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":"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":"Can the company itself redeem the departing partner's shares with an SBA loan?","url":"https://dealroom.so/sba-7a/questions/can-the-company-itself-redeem-the-departing-partner-s-shares-with-an-sba-loan"},{"question":"Can a seller note be used to buy out a partner, and must it be on standby?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-used-to-buy-out-a-partner-and-must-it-be-on-standby"}],"related_terms":[{"term":"Buyout of a Partner","url":"https://dealroom.so/glossary/buyout-of-a-partner"},{"term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"},{"term":"Owner Buyout","url":"https://dealroom.so/glossary/owner-buyout"},{"term":"SBA resource partner","url":"https://dealroom.so/glossary/sba-resource-partner"},{"term":"Down payment","url":"https://dealroom.so/glossary/down-payment"},{"term":"Buyout","url":"https://dealroom.so/glossary/buyout"}],"related_tools":[{"name":"Partner Buyout toolkit","url":"https://dealroom.so/sba-7a/partner-buyout"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-15","sba_rule_sources_checked_through":"2026-06-15"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-a-partner-buyout-be-done-with-zero-money-down-under-the-sba","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}