SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase a majority stake (more than 50%) in a business, but typically the buyer must acquire at least 51% ownership and gain control.
While 100% acquisition is common, the SBA allows for financing of a majority ownership change. The buyer must acquire sufficient equity to obtain control of the business, usually defined as 51% or more. The remaining ownership must comply with SBA affiliation rules.
A buyer wants to acquire 70% of an existing business for $700,000, leaving the original owner with a 30% stake. An SBA 7(a) loan can finance this 70% purchase, provided the buyer has management control.
Insider move
Lenders must ensure that the buyer gains effective control of the business after the acquisition. They also scrutinize any remaining minority owners to ensure they don't trigger affiliation issues that would make the business ineligible.
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
Affiliation and Lending Criteria for SBA Business Loan Programs - Final Rule
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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