--- title: "SBA Acquisition Attorney in Connecticut" description: "SBA Acquisition Attorney across Connecticut. Alex Lubyansky represents buyers and sellers throughout Connecticut." canonical: "https://acquisitionstars.com/sba-acquisition-attorney/ct" firm: "Acquisition Stars" practice: "M&A and securities law" office: "Novi, Michigan (serves clients nationwide)" contact: "consult@acquisitionstars.com | 248-266-2790" --- # SBA Acquisition Attorney in Connecticut By [Alex Lubyansky](https://acquisitionstars.com/about) Managing Partner Last updated October 8, 2026 Acquisition Stars advises buyers and sellers on sba acquisition attorney matters across Connecticut. Serving clients across Connecticut. [Request Engagement Assessment](https://acquisitionstars.com/consultation) ## SBA Acquisition Attorney Practice in Connecticut Acquisition Stars advises buyers and sellers on sba acquisition attorney matters across Connecticut. Alex Lubyansky leads every engagement, and has been M&A counsel since 2013 across transactions of varying complexity, from lower-middle-market deals to multi-party structures. ### Connecticut Transaction Considerations - Connecticut's pass-through entity tax (PET) can significantly affect the after-tax cost of acquiring S-corps or LLCs with Connecticut income - The state's combined unitary reporting requirements mean buyers must analyze the seller's entire affiliated group to understand the true state tax posture - Connecticut imposes an estate tax with a $13.61 million exemption (2024), which can affect succession-driven M&A transactions for family-owned businesses ### Discuss Your Connecticut Transaction Share the basics. Alex reviews every inquiry and responds within one business day. ## Connecticut Legal Framework for SBA Business Acquisition Law ### Non-Compete Agreements The lender expects a seller covenant that holds up, because the loan is underwritten on the goodwill the covenant protects. Enforceable with five-factor reasonableness test. Blue-pencil available. Enforceable under common law if reasonable in time (generally 1-2 years), geographic scope, and activity restricted. Connecticut courts apply a five-factor test from the Torrington Creamery case line. Courts have discretion to blue-pencil overbroad covenants. ### Tax Considerations Successor liability for unpaid state taxes falls on the borrower, so the lender requires clearance before the loan funds. Connecticut imposes a 7.5% corporate business tax. The state also levies a 6.99% pass-through entity tax (PET) that may affect deal structure for S-corp and LLC acquisitions. Connecticut requires combined unitary reporting for affiliated groups, which can complicate multi-entity transactions. ### Filing Requirements Spousal guarantees in community property states and buyer entity filings are lender closing conditions with their own lead time. Mergers and entity conversions must be filed with the Connecticut Secretary of the State. The Department of Revenue Services requires notification of bulk asset transfers. Businesses holding state professional licenses must notify the relevant licensing authority. ### Bulk Sales / Asset Purchases Lender closing conditions include creditor notice or tax clearance where the state keeps them, and that timing sets the funding date. Connecticut has repealed UCC Article 6. However, Connecticut General Statutes Section 12-424 imposes successor liability on buyers of business assets for unpaid sales and use taxes. Buyers should obtain a tax clearance letter from the Department of Revenue Services before closing. ## The federal framework for a SBA-financed acquisition - An SBA 7(a) loan is the financing many buyers use to fund the purchase of an existing business, and a change-of-ownership loan follows its own eligibility and structuring rules set out in the SBA's current Standard Operating Procedures. Because the lender, not just the buyer, has to satisfy these rules, the purchase agreement and the loan application get negotiated together rather than in sequence. - Equity requirements depend on the ownership-change type and the SBA procedures in effect when the loan is processed. Have the lender confirm the transaction category, required contribution and acceptable sources before relying on a proposed seller note. Whether debt counts toward equity is separate from how much seller financing the purchase structure can carry. ### Owners at 20 percent or more generally must guarantee SBA regulations generally require any owner holding at least 20 percent of the business to personally guarantee the loan, under 13 CFR 120.160. The lender can also require other individuals or entities to guarantee even below that threshold if it wants more support for the credit. A buyer bringing in minority partners should know upfront who the lender will require to sign. Sources: [13 CFR 120.160(a)](https://www.ecfr.gov/current/title-13/part-120/section-120.160) ### Equity contribution depends on the transaction type SBA treats equity as one underwriting factor, so the minimum comes from its Standard Operating Procedures: SOP 50 10 8 (effective June 1, 2025) and SOP 50 10 8.1 (effective October 1, 2026). Version 8 requires at least 10 percent of total project costs for a complete change of ownership to a new owner, excluding lines of credit and 504 loans; seller debt counts only on full standby for the loan's life and no more than half of the required injection. Version 8.1, Appendix 15, sets 10 percent for an Initial Acquisition, not reducible; also 10 percent for Business Expansions and Owner Buyouts, which the lender may reduce or eliminate if the borrower meets liquidity and net-worth tests. Under 8.1, standby debt, seller debt and non-controlling minority equity together supply no more than half, and seller debt must be subordinated and on full standby to count. Confirm the version and category with the lender first. Sources: [13 CFR 120.150](https://www.ecfr.gov/current/title-13/part-120/section-120.150), [SOP 50 10 8, effective June 1, 2025, Section B, Ch. 1, Equity requirements](https://legacy.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx), [SOP 50 10 8, effective June 1, 2025, Section B, Ch. 1, Equity requirements](https://legacy.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx), [SOP 50 10 8.1 with Technical Policy Updates, effective October 1, 2026, Appendix 15, Underwriting, Equity Requirements and Limited Equity Injection Sources](https://legacy.sba.gov/sites/default/files/2026-09/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%2010.1.2026.docx) ### Diligence focus for a SBA-financed acquisition - Whether minority owners cross the personal guaranty threshold - How much of the price the seller note can fund - Standby terms on any seller note in the structure - Lender's timeline for approval against the purchase agreement deadline - Community property or spousal guaranty requirements where they apply ## Other M&A and Securities Services in Connecticut Acquisition Stars handles M&A transactions for Connecticut clients and works with securities counsel on securities matters. Alex Lubyansky leads every M&A engagement. [Purchase Agreement Attorney in Connecticut](https://acquisitionstars.com/purchase-agreement-attorney/ct) ## Ready to Discuss Your Connecticut Deal? Alex Lubyansky leads every sba business acquisition law engagement, with an associate supporting the work. M&A counsel since 2013. Nationwide practice. LOI through closing. ### Request Engagement Assessment We review every transaction inquiry within one business day. --- Source: https://acquisitionstars.com/sba-acquisition-attorney/ct Markdown version generated for machine readers. Canonical HTML at the source URL.