SBA 7(a) Q&A
Short answer
No, for partner buyouts above $500,000, the SBA requires an independent business valuation performed by a qualified third-party appraiser, not just an internal valuation.
The SBA mandates a professional, independent valuation for changes of ownership exceeding $500,000 to ensure the purchase price reflects fair market value. An internal valuation, which lacks third-party objectivity, does not satisfy this requirement.
If an owner is buying out their 50% partner for $700,000, and they've only calculated the business value themselves or with an accountant who isn't an independent appraiser, the lender will require a new, formal third-party valuation.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
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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