For SBA lenders
Short answer
It depends. A change in ownership percentage among existing owners generally does not require prior SBA approval, unless it results in a change of control or a new owner acquiring 20% or more.
Lenders generally have unilateral authority to approve minor changes in ownership percentages among existing owners, as long as it does not result in a new individual or entity acquiring 20% or more ownership, or a change in control. If a new owner reaches the 20% threshold, or control shifts, prior SBA approval is required, as new personal guarantees and eligibility reviews may be necessary.
A business with a 7(a) loan is owned 60% by Owner A and 40% by Owner B. Owner A sells 5% to Owner B, making the new split 55%/45%. This minor change typically does not require SBA approval. However, if Owner A sold 15% to a new Owner C, making C a 15% owner and B a 45% owner, this would likely require approval due to a new owner appearing.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Servicing and Liquidation Actions 7(a) Lender Matrix
SOP 50 57 - 7(a) Loan Servicing and Liquidation
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on servicing actions without sba approval
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