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About Equity Buy-in Loans in 2025
An equity buy-in occurs when a non-shareholder, such as an employee or external investor, acquires less than 100% of a business’s equity through a stock or equity sale. For SBA rules Equity Buy-ins are treated the same as partial partner buyouts. A partial partner buyout is an existing shareholder purchasing equity owned by a partner resulting in the buyer owning less than 100% of the total equity.
Equity Buy-ins Now Eligible for SBA Loans
The SBA has been a valuable resource for various financing needs, but partial equity buy-ins—where someone purchases a portion of a business's equity—have been off the table—until now. The SBA has revised their operating procedures, and one of the major impacts for small business owners is that partial equity buy-ins are now allowed under their partial change of ownership rules.