The SBA will only fund partnership buyouts if an existing partner(s) is buying out the other partner(s). You cannot bring a new investor / owner into a partnership buyout. If you do, it no longer qualifies for SBA financing. If a new owner is coming in, they must buy out 100% of the ownership interest of the company. None of the existing owners can stay on with an equity ownership interest. I know this is frustrating for a lot of clients, but I understand the reason the SBA has this rule in place is to avoid companies using the SBA loan product to recapitalize ailing businesses by bringing one or two new investors in. The SBA wants to ensure any buyout the new parties are in full control.

Effectively, it seems like the first de minimus purchase could not use the SBA, however SBA could be used when you buy out all partners and acquire the business in the future.