{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-acquire-a-partial-stake-e-g-60-in-an-existing-business","api_url":"https://dealroom.so/api/public/questions/can-an-sba-7-a-loan-be-used-to-acquire-a-partial-stake-e-g-60-in-an-existing-business","question":"Can an SBA 7(a) loan be used to acquire a partial stake (e.g., 60%) in an existing business?","topic":"Partner buyouts & ownership","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, an SBA 7(a) loan can be used to acquire a partial (majority) stake in an existing business, provided the buyer gains control.","rule":"SBA loans can finance the acquisition of a majority ownership (51% or more) in a business, allowing the buyer to assume control. The new ownership structure and management plan must be clearly defined.","example":"If you are purchasing 60% of a business for $600,000, and the existing owner retains 40%, an SBA loan can facilitate this. You would need to provide the 10% equity injection on your $600,000 purchase, and the lender would ensure you have management control.","what_lenders_check":"Lenders focus on ensuring the buyer gains effective control of the business and that the remaining owner's role and any financial arrangements (e.g., seller note) are compliant and do not undermine the buyer's control or cash flow.","required_facts":["Partial stake acquisition","Majority ownership","Buyer control","Equity injection","New ownership structure"],"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/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[],"related_terms":[{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"Partial Stake","url":"https://dealroom.so/glossary/partial-stake"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-acquire-a-partial-stake-e-g-60-in-an-existing-business","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."]}