With a Partial change of ownership (PCO) (also called partial buy-in) the seller can stay on for longer than a year in any type of role deemed appropriate. If the seller owns 20% or more AND/OR is KEY! they'll be required to personally GTY.

For 100% buy-out, SBA rule is business as usual in that the seller has only up to 12-months to remain in the company in a transition or consulting role.

SBA has not changed the stance on EARNOUTS.....they are not eligible for SBA.

Regarding compensation for the seller on a go forward basis if they are staying on long-term in the case of a partial change of ownership/Partial buy-in, the DSC calculation needs to include their ongoing compensation.