SBA 7(a) Q&A
Short answer
If the conditions for a $0-down partner buyout are not met, a minimum 10% equity injection from the buyer is generally required.
When the remaining owner does not meet the 24-month active ownership criteria or the business's pro forma debt-to-worth ratio exceeds 9:1, the standard equity injection requirement for a change of ownership applies. This typically mandates a minimum of 10% of the total project cost to be injected by the buyer.
If Alex, a 1-year active owner, wants to buy out his partner in a $1,000,000 business, he would need to provide at least a $100,000 (10%) equity injection. The SBA loan would then finance the remaining $900,000.
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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