{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/does-a-partner-buyout-require-100-ownership-by-the-acquiring-individual","api_url":"https://dealroom.so/api/public/questions/does-a-partner-buyout-require-100-ownership-by-the-acquiring-individual","question":"Does a partner buyout require 100% ownership by the acquiring individual?","topic":"Partner & owner buyout","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, for an SBA 7(a) loan to finance a partner buyout, the transaction must result in 100% ownership by the acquiring individual(s).","rule":"SBA rules for a change of ownership generally require that the acquiring individual or group obtains 100% of the ownership interest in the business. This ensures a clear transfer of control and eliminates any ongoing ownership by the selling party, preventing partial buyouts where the seller retains a significant stake.","example":"If Partner A owns 60% and Partner B owns 40%, and Partner A wants to buy out Partner B, Partner A must acquire the full 40% to achieve 100% ownership. The loan would not be approved if Partner A only bought 20%, leaving Partner B with 20%.","what_lenders_check":"Lenders meticulously review the purchase agreement and post-closing ownership structure to confirm that the acquiring party achieves 100% ownership. They ensure no ownership interest, directly or indirectly, remains with the departing owner.","required_facts":["100% ownership required","Complete control transfer","No seller retention","Clear ownership structure"],"source_families":["SOP 50 10 — Lender and Development Company Loan Programs"],"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"}],"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":"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"}],"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":"Acquiring entity","url":"https://dealroom.so/glossary/acquiring-entity"},{"term":"100% collateralization","url":"https://dealroom.so/glossary/100-collateralization"},{"term":"Principal (Individual)","url":"https://dealroom.so/glossary/principal-individual"}],"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/does-a-partner-buyout-require-100-ownership-by-the-acquiring-individual","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."]}