Glossary · Doing the deal
In short
The purchase of one owner's share of a business by another existing owner. The SBA 7(a) program supports these buyouts under specific conditions.
For an owner buyout to be eligible for 7(a) financing, the selling owner must fully exit the business, and the buying owner must maintain or gain controlling interest. The loan proceeds are used to pay the seller for their equity. Ensure the transaction meets SBA "change of ownership" requirements.
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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