Can a minority owner (10%) stay on for more than a year w/ SBA?

February 03, 2022
by a searcher from University of California, Santa Barbara in Fort Lauderdale, FL, USA
Hi All,
Question for the community: I understand that the SBA prohibits ongoing owner involvement in the business after an acquisition is made with a 7(a) loan; owners may remain involved as a consultant, for up to a year. Is there an ownership threshold below which a minority owner may remain involved for a longer or indefinite term? For example, let's say there is a 90% owner/founder who wants to retire, and a 10% owner/employee who wants to remain engaged long term. Is there any way to make that happen?
Thanks in advance!
from Hillsdale College in New York, NY, USA
from University of Missouri in St. Louis, MO, USA