SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can be used for an acquisition where the seller retains a minority ownership, typically 10% or less, to ensure a complete change of ownership.
For a change of ownership, the SBA generally requires that the buyer acquire 100% of the business or at least a controlling interest. If the seller retains an interest, it usually must be a minority, non-controlling interest (e.g., 10% or less) and typically for a limited period, to ensure the buyer has full operational control.
A buyer acquires 90% of a business, and the seller retains 10% for a two-year transition period. The SBA 7(a) loan can finance the 90% acquisition, assuming the buyer has full operational control.
Insider move
Lenders scrutinize the terms of the seller's retained interest to ensure the buyer has clear control and that the seller's remaining stake does not trigger affiliation rules that would render the business ineligible.
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
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.
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