SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can finance the purchase of a majority stake (more than 50%) of a business, as long as you gain control of the entity.
The SBA permits financing for the purchase of a controlling interest in a business, meaning the buyer acquires 51% or more of the ownership. This allows for partner buyouts or acquiring a controlling share from multiple owners, enabling the buyer to take operational and strategic control.
If you are buying 60% of a business from its current owner for $600,000, and the remaining 40% owner will stay on, an SBA 7(a) loan can finance your $600,000 purchase, as you will assume majority control.
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 2026-06-13. 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.
More on partner buyouts
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