SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can be used to buy out a minority partner's stake, provided the transaction results in the acquiring individual obtaining at least 51% ownership and management control.
SBA loans can finance partner buyouts, but the acquiring party must gain majority ownership (over 50%) and retain or obtain active management of the business. The loan cannot be used simply to finance a minority stake acquisition if the buyer does not achieve control.
A business has three partners, each owning 33.3%. One partner wishes to buy out a 20% stake from another partner. This would result in the acquiring partner owning 53.33%. An SBA 7(a) loan could finance this 20% buyout because the acquiring partner gains majority control.
Insider move
Lenders verify that the buyout leads to a clear change of control and that the remaining or acquiring owner possesses sufficient management experience. They also require a business valuation to ensure the purchase price for the minority stake is reasonable.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. 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.
More on partner buyouts
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day