SBA 7(a) Q&A
Short answer
For a partner buyout, key documentation includes the buy-sell agreement, a business valuation, and proof of funds transfer to the departing partner.
Lenders will require a fully executed buy-sell agreement or stock purchase agreement detailing the terms of the buyout. An independent business valuation is necessary to justify the purchase price. Additionally, documentation showing the transfer of funds to the departing partner and the updated ownership structure will be required at closing.
A buyer acquiring their partner's 50% stake would provide a copy of their partnership agreement, the executed buy-sell agreement, a third-party valuation report of the business, and bank statements showing the funds transferred to the departing partner.
Insider move
Lenders ensure the buyout is legitimate and that the transaction does not involve any unallowable payments to the departing partner. They verify the valuation is reasonable and that the new ownership structure complies with SBA rules.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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