For SBA lenders
Short answer
The SBA requires information demonstrating how the acquired business will continue to operate successfully, including the buyer's management plan, retention of key employees, and transition of customer relationships.
For a change-of-ownership, the SBA needs assurance that the business will remain a viable going concern under new management. Lenders must evaluate the buyer's plan for continuity of operations, staffing, and customer base, and any training or transition assistance from the seller.
For a business acquisition, the lender requires the buyer to submit a detailed business plan outlining how they will manage operations, noting that two key employees will remain with the business, and describing a 3-month transition period with the seller to ensure client retention.
Insider move
Lenders must assess the risks associated with management transition and ensure the buyer has a credible plan to maintain business continuity. High turnover of key staff or loss of critical customer relationships post-acquisition is a major concern.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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