Glossary · Doing the deal
In short
This is when one or more partners purchase the ownership interest of another partner in an existing business. The SBA 7(a) loan can be used to finance this type of transaction.
If you're buying out an existing partner, the SBA 7(a) loan can be structured for this purpose. The key is that the business must demonstrate strong global cash flow to support the new debt, and the remaining partner(s) must meet SBA eligibility and equity injection requirements. This is a common use for 7(a) loans.
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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