SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can be used to purchase a majority stake (at least 51%) in a business, provided the buyer gains control and meets all other eligibility requirements.
The SBA's change of ownership rules require that the buyer acquire at least 51% of the business to ensure a clear transfer of control. Loans can finance the purchase of 51% or more of an existing business, allowing for situations where a seller or another partner retains a minority, non-controlling interest.
A buyer wishes to purchase 80% of an existing manufacturing company, with the seller retaining a 20% passive stake. An SBA 7(a) loan can finance this 80% acquisition, as the buyer gains majority control. The seller's retained 20% would need to be passive and not create an affiliation issue.
Insider move
Lenders ensure the buyer genuinely obtains control of the business. They will review ownership documents, management agreements, and any agreements with the remaining minority owner(s) to confirm they do not retain undue influence or control.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
13 CFR Part 121 - Small Business Size Regulations
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.
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