SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can finance the purchase of 100% of an existing business from a current partner, provided all eligibility and equity requirements are met.
SBA 7(a) loans are commonly used for business acquisitions, including partner buyouts. The transaction must result in a complete change of ownership, and the remaining partner(s) must meet all SBA eligibility criteria, including a required equity injection into the business.
A 50/50 business partner wants to buy out the other partner for $800,000. The buyer contributes $80,000 in cash equity, and an SBA 7(a) loan covers the remaining $720,000 to purchase the partner's 50% stake.
Insider move
Lenders will ensure a bona fide change of ownership occurs and the selling partner completely divests. They also confirm the remaining partner's ability to operate and service the debt, alongside the required equity injection.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
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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