Glossary · Doing the deal
In short
This refers to a genuine and complete transfer of ownership and control of a business from the seller to the buyer. The SBA requires this for 7(a) acquisition loans to ensure a true sale, not just a restructuring.
For your 7(a) loan, the lender must confirm a Bona Fide Change of Ownership. This means the seller cannot retain significant ownership, management control, or financial ties that contradict a true sale. Any retained seller interest or seller financing must be structured according to SBA rules, usually on full standby.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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