SBA 7(a) Q&A
Short answer
An SBA 7(a) loan can finance up to 100% of an eligible partner buyout, provided the total loan amount does not exceed the SBA's maximum and the transaction is justified by a valuation.
The SBA 7(a) loan program allows for the financing of partner buyouts, enabling one or more owners to acquire the equity interest of a departing partner. There isn't a specific percentage cap for the buyout itself; rather, the loan covers the eligible cost of the acquisition. The total loan amount cannot exceed $5 million, and a business valuation is typically required to justify the purchase price.
Two partners own a business valued at $1,000,000. One partner wants to buy out the other's 50% stake for $500,000. An SBA 7(a) loan can finance this entire $500,000 buyout, assuming all other eligibility and underwriting criteria are met.
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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