Can SBA 7a be used for a partial/minority stake buyout?

profile

April 24, 2026

by a searcher from Wabash College in Chicago, IL, USA

For example, could you max out the program ($5m) for a less than 50% equity stake?
0
3
90
Replies
3
commentor profile
Reply by a lender
from University of Missouri in Denver, CO, USA
Yes, but sellers would be required to guarantee for at least 2 years or more if they are more than a 20% owner. A little confused on your second point
commentor profile
Reply by a lender
from University of Southern California in Los Angeles, California, USA
Hi Anon - Yes, absolutely you can use the SBA 7a and buy 21% of the business for $5m. You and the seller will have to co-pg the loan.
commentor profile
+1 more reply.
Join the discussion