SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can be used to acquire a partial (majority) stake in an existing business, provided the buyer gains control.
SBA loans can finance the acquisition of a majority ownership (51% or more) in a business, allowing the buyer to assume control. The new ownership structure and management plan must be clearly defined.
If you are purchasing 60% of a business for $600,000, and the existing owner retains 40%, an SBA loan can facilitate this. You would need to provide the 10% equity injection on your $600,000 purchase, and the lender would ensure you have management control.
Insider move
Lenders focus on ensuring the buyer gains effective control of the business and that the remaining owner's role and any financial arrangements (e.g., seller note) are compliant and do not undermine the buyer's control or cash flow.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). 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.
Terms in this answer
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