Glossary · Doing the deal
Partial buyout
In short
A transaction where you purchase only a portion of a business, often alongside other owners. This means you won't own 100% and will share control and profits.
What it means in a deal
In a partial buyout, the SBA 7(a) loan can finance your share, but the seller must reduce their ownership stake to 20% or less to avoid affiliation rules. You need to clarify roles, responsibilities, and profit distribution with other owners early on.
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 Partial buyout
- Is a partner buyout a complete or partial change of ownership for the SBA?
- Can an SBA 7(a) loan finance a partial buyout where the seller retains a minority stake?
- Can a 7(a) loan finance a partial buyout where the seller retains a minority stake and remains active?
- When does the SBA permit a 7(a) loan to finance a partial buyout where the seller retains a significant ownership stake?
- How does partial standby treatment affect a seller's note for eligibility?
- Can a seller note on partial standby count towards the required equity injection?
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.
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