SBA financing for partnership buyout
Our lending experts can help you make a well-informed decision on debt financing when buying out a partner’s stake in your business.
For businesses that are financially sound and profitable, the SBA 7(a) loan offers important benefits for the buying partner:
- No equity injection required when the business has a debt-to-net-worth ratio no greater than 9:1 before changing ownership, and the remaining partner has more than 2 years’ hands-on experience in the business.
- Goodwill can be included in financing.
- Loan proceeds can be used for a lump-sum payment, a buyout over time, or an earn-out.