Do all minority owners need to fully exit business in 12 months for SBA 7a?

by a searcher from Iowa State University of Science and Technology

2 years ago

I have a deal with one majority owner, at 60%, and two minority owners, each at 20%. Do all three owners need to exit the business per SBA 7a rules within 12 months? With only 12 employees, the two minority owners are critical to not only transitioning the business, but will leave a substantial hole organizationally. They would like to stay on for 3-5 years before retiring themselves.

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