Partner Buyout Financing
Buy out your business partner and take full ownership — SBA 7(a) makes it possible with as little as 10% equity.
Overview
When business partnerships end, one partner often wants to buy the other out. SBA 7(a) loans are the most common tool for this, providing financing to purchase a partner's ownership stake. The business is valued, the buyout price is determined, and the SBA finances the transaction similar to a business acquisition.
Who Is This For?
- Business owners buying out a departing partner
- Partners taking full ownership of an established business
- Family business succession and ownership transitions
- Partnerships dissolving where one party wants to continue
Recommended Programs
Loan programs that fit this buying scenario.
The Buying Process
What to expect from pre-approval to closing.
Business Valuation
An independent valuation determines fair market value and the buyout price.
Negotiate Terms
Structure the buyout agreement including seller notes and transition terms.
SBA Application
Submit the buyout package with financials, valuation, and business plan.
Close & Transition
Complete the buyout and take full ownership.
Frequently Asked Questions
An independent business valuation assesses the fair market value of the business. The partner's ownership percentage determines their share of that value.