SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase a majority stake (more than 50%) but not 100% of an existing business. This is common in partial ownership changes or partner buyouts.
The SBA permits financing for the purchase of a controlling interest (at least 51%) in a business. This allows for transactions where a buyer wants to acquire a majority stake while existing owners retain a minority interest, or when one partner is buying out another's majority share. The new majority owner must meet all SBA eligibility criteria and demonstrate the ability to manage the business effectively.
A buyer wants to acquire 70% of an established marketing agency, with the original founder retaining a 30% stake. An SBA 7(a) loan can finance this 70% purchase, making the buyer the majority owner, provided the transaction is properly structured and valued.
Insider move
Lenders ensure the buyer gains effective control of the business (at least 51% ownership) and that the transaction is clearly structured. They also assess the stability and roles of any remaining minority owners.
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.
More on what it can be used for
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