SBA 7(a) Q&A
Short answer
No, an SBA 7(a) loan cannot finance 100% of the purchase price for a co-owner buyout; a minimum equity injection from the buyer is always required.
The SBA requires a minimum equity injection from the buyer for all business acquisitions, including partner buyouts. This is typically 10% of the total project costs. Therefore, the loan will cover a maximum of 90% of the eligible project costs, not the entire purchase price.
If the total project cost for buying out your co-owner is $500,000, you would need to contribute at least $50,000 (10%) in equity, meaning the SBA loan could cover a maximum of $450,000 of that total.
Insider move
Lenders ensure the buyer's equity contribution meets the minimum 10% requirement and is sourced from eligible, unencumbered funds. The SBA will not guarantee a loan that covers 100% of the project cost.
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
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.
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