SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can finance the purchase of a majority stake (e.g., 75%) in a business, as long as the buyer gains control.
SBA loans can be used for change of ownership transactions, including acquiring a controlling interest in an existing business. The buyer must gain a majority stake (typically 51% or more) to qualify as an eligible change of ownership.
A buyer wants to acquire 75% of a tech company for $1.5 million. The SBA loan can finance this acquisition, provided the remaining 25% owner does not create affiliation issues and the buyer is deemed to have control.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
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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