Buying Out a Partner? New Small Business Administration Lending Rules Can Help
A technical change in SBA policy makes it easier to buy out a partner. The U.S. Small Business Administration has fixed a rule that was threatening to make it difficult to finance partnership buyout transactions using SBA-backed loans. At the start of 2018, the SBA adopted the rule, Standard Operating Procedures 50 10 5(J), that stated that in order to qualify for a loan to buy out a partner's interest in the business, the balance sheet must have a minimum equity position aft