Glossary · Doing the deal
In short
This refers to the purchase of an existing business, where ownership transfers from a seller to a buyer. It's the most common type of SBA 7(a) loan.
Most SBA 7(a) loans are used for change-of-ownership transactions. The loan funds the purchase price, working capital, and other associated costs. You'll need to clearly delineate assets and liabilities being transferred, typically through an Asset Purchase or Stock Purchase Agreement, and ensure all SBA eligibility requirements are met.
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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