Partner buyout

Buying out a co-owner's stake so the remaining owner holds the whole company, financed under SBA 7(a) as its own change-of-ownership flavor with rules that differ from a stranger acquisition.

Under the mid-2025 rules the SBA can waive the usual cash injection when the remaining owner certifies 24 months of active involvement at the same or higher ownership stake and the balance sheet shows debt-to-worth no worse than 9 to 1, which makes some partner buyouts close with far less cash than buyers assume; the certified financials that prove it are the gating homework.

In numbers: Two 50/50 partners agree on a $1.2M buyout of one side. Because the buyer certifies 24 months of active same-stake ownership and the 9-to-1 leverage test passes, the lender finances it without the 10% injection a normal acquisition would require, so the buyer's cash to close is closing costs, not $120k of equity.