Glossary · Doing the deal
Change in ownership
In short
The transfer of control or a significant portion of a business's equity from one party to another. This is the core event in any business acquisition.
What it means in a deal
For an SBA 7(a) loan, a change in ownership is the specific event that triggers the need for SBA financing to acquire an existing business. The SBA has strict rules regarding who can buy, how the deal is structured (asset vs. stock purchase), and how the seller exits. Ensure your deal is structured to meet these requirements.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Change in ownership
- How does the SBA handle a seller's retained ownership in a change-of-ownership transaction?
- How does the SBA handle a seller's retained ownership in a 7(a) change-of-ownership transaction?
- What specific due diligence is required for seller financing in a change of ownership?
- How does the SBA evaluate the reasonableness of goodwill in a 7(a) change-of-ownership transaction?
- How is goodwill valued and underwritten in a change of ownership acquisition for a 7(a) loan?
- What are the minimum requirements for an acceptable business valuation in a 7(a) change-of-ownership transaction?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.