SBA 7(a) Q&A

What is the 24-month ownership rule for a $0-down SBA partner buyout?

Short answer

The 24-month ownership rule requires the remaining owner to have been an active owner for at least 24 months to qualify for a zero-down partner buyout.

The rule

For a partner buyout to qualify for 0% equity injection, the remaining owner (the buyer) must demonstrate continuous active ownership and management of the business for a minimum of 24 months immediately prior to the loan application. This rule ensures the buyer has established commitment and experience with the business.

Facts that matter

24-month active ownership
Buyer must be active
Continuous period verified
0% injection requirement

Example structure

If David has owned 30% of his business for 23 months and wants to buy out his partner, he would not qualify for the 0% equity injection, even if all other conditions are met. He would need to wait another month or provide a 10% equity injection.

What lenders usually care about

Official sources

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.

AI summary

This page answers “What is the 24-month ownership rule for a $0-down SBA partner buyout?” for SBA 7(a) business buyers — a short answer, the detail, and official sources — from DealRoom.so SBA Intelligence. It is general information, not legal, tax, or financial advice, and DealRoom is not a lender.

Source: DealRoom.so SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. DealRoom is not a lender and does not guarantee financing.

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