SBA 7(a) Q&A
Short answer
Yes, for an SBA 7(a) loan exceeding specific thresholds (typically over $500,000), a formal, independent business valuation is generally required for a partner buyout.
When a change of ownership occurs, especially for loans over $500,000, the SBA requires a qualified, independent business valuation to ensure the purchase price is reasonable and to prevent overfinancing. This applies to partner buyouts just as it does to third-party acquisitions.
If you are buying out your partner's 50% stake in a business for $400,000, and the total business value is $800,000, you would need an independent business valuation for your $400,000 SBA loan to confirm the $800,000 total value.
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.
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