SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can be used to finance the purchase of 100% of an exiting partner's ownership share, provided the remaining owner(s) meet the equity injection requirements and other eligibility criteria.
SBA loans can finance a change of ownership, including the buyout of a partner's entire share. The transaction must result in the continuing owner(s) having at least a 10% equity injection (calculated on the total project cost, including the buyout amount) and maintaining overall control of the business.
If you and your partner each own 50% of a business valued at $1,000,000, an SBA loan could finance the $500,000 purchase of your partner's share. You would still need to provide your own 10% equity injection on the total project cost.
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.
More on partner buyouts
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day