Bringing on an Operations Partner in an SBA Deal, What Should I Know?

June 23, 2025
by a searcher from Carnegie Mellon University in Denver, CO, USA
I’m currently evaluating a new business and bringing in a partner who has industry experience. I believe their expertise will be an asset, so the plan is for them to co-own and operate the business with me. They’ll step into the CEO role in a more customer/client facing role, and I’ll take the role of President focused in operations. I’m proposing a 51/49 ownership split, with me holding the majority share. The business does $500k SDE with a huge potential for growth.
I’d love to hear from others who’ve gone through SBA deals with a partner. What should I be watching out for when there are two owners involved?
A few questions I’m working through:
Do we each need to have our own legal counsel to protect our individual interests?
Should one of these lawyers help with the acquisition deal or is that a 3rd lawyer we need?
How does SBA financing typically work when there are two buyers?
Should we create an LLC for the two of us before approaching the bank and moving forward with the acquisition?
Open to any advice or experiences others are willing to share.
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
from University of Southern California in Los Angeles, CA, USA