SBA 7(a) Q&A
Short answer
Yes, for an SBA 7(a) loan to finance a partner buyout, the transaction must result in 100% ownership by the acquiring individual(s).
SBA rules for a change of ownership generally require that the acquiring individual or group obtains 100% of the ownership interest in the business. This ensures a clear transfer of control and eliminates any ongoing ownership by the selling party, preventing partial buyouts where the seller retains a significant stake.
If Partner A owns 60% and Partner B owns 40%, and Partner A wants to buy out Partner B, Partner A must acquire the full 40% to achieve 100% ownership. The loan would not be approved if Partner A only bought 20%, leaving Partner B with 20%.
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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