SBA 7(a) Q&A
Short answer
A partner buyout can be either a complete or partial change of ownership, but SBA 7(a) loans typically finance transactions resulting in a complete change.
An SBA 7(a) loan for a change of ownership generally requires that the transaction results in a complete change, meaning 100% of the ownership interest is transferred. However, a partner buyout is typically structured to result in 100% ownership by the acquiring individuals, even if the business itself continues.
If three partners (A, B, C) each own 33.3%, and A buys out B and C, resulting in A owning 100%, this is a complete change for SBA purposes. If A only bought out B, and C retained their 33.3%, this might be considered a partial change, which is typically not allowed unless specific conditions are met.
Lenders scrutinize the final ownership structure to ensure that the departing owner fully divests and that the acquiring owner(s) achieve 100% control. Partial buyouts where the seller retains a significant stake are generally not eligible for SBA financing.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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