SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can finance a partner buyout, allowing one owner to purchase the interest of another existing owner.
The SBA 7(a) program can be used to finance a change of ownership where one or more existing owners are buying out the interest of another existing owner. The remaining owners must acquire at least 100% of the business to prevent partial change of ownership issues.
If two partners each own 50% of a business valued at $1,000,000, one partner could use an SBA 7(a) loan to purchase the other's $500,000 share.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
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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