{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-i-buy-out-my-business-partner-with-an-sba-7-a-loan","api_url":"https://dealroom.so/api/public/questions/can-i-buy-out-my-business-partner-with-an-sba-7-a-loan","question":"Can I buy out my business partner with an SBA 7(a) loan?","topic":"Partner & owner buyout","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, an SBA 7(a) loan can be used to facilitate a change of ownership where one or more existing owners buy out a departing partner.","rule":"The SBA 7(a) program specifically allows for financing of changes of ownership, including partner buyouts. The loan proceeds are used to purchase the equity of the departing owner, enabling the remaining owner(s) to acquire full control. The business must remain eligible and the acquiring owner must be active in management.","example":"Sarah, a 50% owner for five years, wants to buy out John's 50% stake in their $1,200,000 business. She can apply for a $1,200,000 SBA 7(a) loan to purchase his shares and become the sole owner.","what_lenders_check":"Lenders focus on the buyer's management experience, the business's financial health post-buyout, and ensuring the transaction is an arm's length, fair market value deal. They also verify the departing partner's complete exit from ownership.","required_facts":["Partner buyout eligible","Change of ownership","Active management required","Fair market value"],"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 a partner buyout be done with zero money down under the SBA?","url":"https://dealroom.so/sba-7a/questions/can-a-partner-buyout-be-done-with-zero-money-down-under-the-sba"},{"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":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"},{"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"}],"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-i-buy-out-my-business-partner-with-an-sba-7-a-loan","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."]}