SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to acquire a partial ownership stake in an existing business, provided it results in the buyer having majority control.
For a business acquisition, the SBA generally requires the applicant to acquire at least a 51% ownership stake. This ensures the borrower has sufficient control to manage the business and fulfill loan obligations.
A buyer wants to purchase a 60% share of an existing business. An SBA 7(a) loan can finance this, as the buyer gains majority control. Buying only 40% would typically not be eligible.
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 2026-06-14. 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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