
SBA Loan Eligibility for Partner Buyouts
SBA loans offer favorable terms for partner buyouts, including low or no equity injection if the business’s debt-to-net-worth ratio is 9:1 or better and the buyer has held at least 10% ownership for two years. Only remaining owners with 20%+ equity must personally guarantee the loan, and partial buyouts are now eligible under updated SBA rules with third-party valuations. These loans are often faster and less risky than standard acquisitions, making them an attractive option for existing partners.
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