Glossary · Doing the deal
Partial Stake
In short
This means acquiring less than 100% ownership of a business. While possible in some M&A scenarios, SBA 7(a) loans for business acquisitions generally require a full change of ownership for eligibility.
What it means in a deal
For an SBA 7(a) business acquisition loan, you typically must acquire 100% of the business. If you're looking to buy a partial stake, it's usually only eligible as a 'partner buyout' where one owner buys out another's entire share. A partial stake acquisition with the seller retaining significant ownership is generally not eligible for a 7(a) loan.
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 Stake
- 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?
- Can an SBA 7(a) loan be used to acquire a partial stake (e.g., 60%) in an existing business?
- 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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