SBA 7(a) Q&A
Short answer
For a partner buyout, the equity injection is generally calculated based on the total purchase price of the partner's share being acquired, requiring the standard 10% injection.
The SBA views a partner buyout as an acquisition. The buying partner must demonstrate sufficient equity injection proportionate to the portion of the business being acquired. The buyout must result in a new ownership structure where the buying partner has the required control.
If you own 50% of a business valued at $1,000,000 and want to buy out your partner's 50% share for $500,000, your equity injection would typically be 10% of that $500,000, or $50,000.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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