SBA 7(a) Q&A

Can a partner buyout be done with zero money down under the SBA?

Short answer

Yes, a partner buyout can be structured with zero equity injection under specific SBA conditions for existing owners.

The rule

A 0% equity injection is permitted for an existing owner buying out a partner if the remaining owner has been active in the business and held ownership for at least the past 24 months. Additionally, the business's pro forma debt-to-worth ratio must be no greater than 9:1 after the transaction. If these conditions are not met, a 10% equity injection is required.

Facts that matter

0% injection possible
Active owner 24+ months
Debt-to-worth 9:1
Specific conditions apply

Example structure

Maria, an active 40% owner for three years, wants to buy out her partner's 60% share of their $750,000 business. If the company's debt-to-worth ratio will be 8:1 post-buyout, she could potentially secure a $750,000 SBA 7(a) loan with zero equity injection.

What lenders usually care about

Official sources

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.

Last reviewed 2026-06-15 · SBA sources checked through 2026-06-15. DealRoom analysis of the current SBA 7(a) rulebook for change-of-ownership / partner buyouts. 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.