{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/is-a-partner-buyout-a-complete-or-partial-change-of-ownership-for-the-sba","api_url":"https://dealroom.so/api/public/questions/is-a-partner-buyout-a-complete-or-partial-change-of-ownership-for-the-sba","question":"Is a partner buyout a complete or partial change of ownership for the SBA?","topic":"Partner & owner buyout","audience":"borrower","bot_mode":"buyer","short_answer":"A partner buyout can be either a complete or partial change of ownership, but SBA 7(a) loans typically finance transactions resulting in a complete change.","rule":"An SBA 7(a) loan for a change of ownership generally requires that the transaction results in a complete change, meaning 100% of the ownership interest is transferred. However, a partner buyout is typically structured to result in 100% ownership by the acquiring individuals, even if the business itself continues.","example":"If three partners (A, B, C) each own 33.3%, and A buys out B and C, resulting in A owning 100%, this is a complete change for SBA purposes. If A only bought out B, and C retained their 33.3%, this might be considered a partial change, which is typically not allowed unless specific conditions are met.","what_lenders_check":"Lenders scrutinize the final ownership structure to ensure that the departing owner fully divests and that the acquiring owner(s) achieve 100% control. Partial buyouts where the seller retains a significant stake are generally not eligible for SBA financing.","required_facts":["Complete change preferred","100% ownership common","Departing owner divests","Partial changes restricted"],"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":"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":"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":"Complete Change of Ownership","url":"https://dealroom.so/glossary/complete-change-of-ownership"},{"term":"Buyout of a Partner","url":"https://dealroom.so/glossary/buyout-of-a-partner"},{"term":"Partial buyout","url":"https://dealroom.so/glossary/partial-buyout"},{"term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"},{"term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"},{"term":"Owner Buyout","url":"https://dealroom.so/glossary/owner-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/is-a-partner-buyout-a-complete-or-partial-change-of-ownership-for-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."]}