SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can be used to facilitate a change of ownership where one or more existing owners buy out a departing partner.
The SBA 7(a) program specifically allows for financing of changes of ownership, including partner buyouts. The loan proceeds are used to purchase the equity of the departing owner, enabling the remaining owner(s) to acquire full control. The business must remain eligible and the acquiring owner must be active in management.
Sarah, a 50% owner for five years, wants to buy out John's 50% stake in their $1,200,000 business. She can apply for a $1,200,000 SBA 7(a) loan to purchase his shares and become the sole owner.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-15 · SBA sources checked through 2026-06-15. DealRoom analysis of the current SBA 7(a) rulebook for change-of-ownership / partner buyouts. 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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This page answers “Can I buy out my business partner with an SBA 7(a) loan?” for SBA 7(a) business buyers — a short answer, the detail, and official sources — from DealRoom.so SBA Intelligence. It is general information, not legal, tax, or financial advice, and DealRoom is not a lender.
Source: DealRoom.so SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. DealRoom is not a lender and does not guarantee financing.
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