SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase a majority ownership stake (51% or more) in a business, allowing the buyer to gain control while potentially leaving a minority owner.
For a change of ownership, the buyer must acquire at least 51% of the business to qualify for an SBA 7(a) loan. The buyer becomes the controlling interest, and the loan proceeds finance their portion of the acquisition. Any remaining minority owner would be subject to SBA eligibility and character requirements if they hold 20% or more.
A buyer uses an SBA 7(a) loan to purchase 70% of an existing business for $700,000, leaving the original owner with a 30% minority stake. The buyer now has control, and the loan is approved.
Insider move
Lenders ensure the buyer acquires a controlling interest (51%+) and that all owners with 20% or more ownership (including any remaining minority owners) meet SBA eligibility requirements, including personal guarantees.
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.
Terms in this answer
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