For SBA lenders
Short answer
Lenders assess the buyer's relevant industry experience, management background, operational skills, and financial acumen to ensure they have the capabilities to successfully run the acquired business.
The SBA requires lenders to determine if the proposed management team has the experience and expertise necessary for the successful operation of the business. This includes evaluating prior roles, responsibilities, and achievements, particularly in the industry being acquired.
A buyer with 15 years of experience managing operations for a large restaurant chain is acquiring a small café. The lender would view this experience favorably, demonstrating relevant management and industry knowledge for the acquisition.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
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 change-of-ownership underwriting
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