Update to Minimum Equity Requirement for Veteran Business Acquisitions

The purpose of this notice is to announce a new flexibility for 7(a) changes of ownership in which one or more Veterans will own and control the Applicant business following the transaction. In recognition of their service to the Nation, and to help Veterans acquire and continue established small businesses as their owners retire, SBA is allowing eligible Veteran buyers to meet the required equity injection through permitted outside sources (standby debt, seller debt on full standby, and Non-controlling Minority Equity Investments) so that Veterans may preserve personal savings and liquidity to support post-acquisition operations.