{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-is-the-24-month-ownership-rule-for-a-0-down-sba-partner-buyout","api_url":"https://dealroom.so/api/public/questions/what-is-the-24-month-ownership-rule-for-a-0-down-sba-partner-buyout","question":"What is the 24-month ownership rule for a $0-down SBA partner buyout?","topic":"Partner & owner buyout","audience":"borrower","bot_mode":"buyer","short_answer":"The 24-month ownership rule requires the remaining owner to have been an active owner for at least 24 months to qualify for a zero-down partner buyout.","rule":"For a partner buyout to qualify for 0% equity injection, the remaining owner (the buyer) must demonstrate continuous active ownership and management of the business for a minimum of 24 months immediately prior to the loan application. This rule ensures the buyer has established commitment and experience with the business.","example":"If David has owned 30% of his business for 23 months and wants to buy out his partner, he would not qualify for the 0% equity injection, even if all other conditions are met. He would need to wait another month or provide a 10% equity injection.","what_lenders_check":"Lenders carefully examine historical operating agreements, tax returns, and other corporate documents to verify the buyer's continuous active ownership and management over the full 24-month period. They also assess the buyer's role during this time.","required_facts":["24-month active ownership","Buyer must be active","Continuous period verified","0% injection requirement"],"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":"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/what-is-the-24-month-ownership-rule-for-a-0-down-sba-partner-buyout","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."]}