For SBA lenders
Short answer
A lender can approve a change in ownership without prior SBA approval if the transaction does not involve any new owners with 20% or more equity, does not change control, and does not materially alter the business's operations or financial condition.
Lenders generally have delegated authority for minor changes in ownership that do not fundamentally alter the control or eligibility of the borrower. However, any change involving new owners with significant equity (20% or more), a change in who controls the business, or substantial operational changes typically requires prior SBA review and approval.
A 7(a) borrower has two owners, 60% and 40%. The 40% owner sells their stake to the 60% owner, making them a 100% owner. Since there are no new 20%+ owners and control remains with an existing principal, the lender could approve this without prior SBA approval, provided all other eligibility criteria are met.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 57 - 7(a) Loan Servicing and Liquidation
Servicing and Liquidation Actions 7(a) Lender Matrix
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.
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