SBA 7(a) Q&A
Short answer
Yes, multiple years of the business's tax returns are essential for supporting an SBA partner buyout loan application.
Business tax returns provide critical historical financial data, including revenue, expenses, and profitability, which lenders use to assess the company's financial health and repayment ability. Typically, three years of federal tax returns are required.
For a partner buyout, the lender will analyze the past three years of the business's federal tax returns (e.g., Form 1120 for C-Corps, Form 1120-S for S-Corps, or Schedule K-1 for partnerships) to verify reported income and expenses.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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 tax returns of the business be used to support a partner buyout?” 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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