November 5, 2026

6 Million Small Businesses Face Ownership Exits by 2035

Planning and Access to Capital Needed for Successful Transitions

In Fort Worth, Texas, one family has kept a business operating for nearly nine decades. Their story raises a question facing millions of owners: Who will take over?

McKinsey says six million U.S. small and midsize businesses will face ownership exits by 2035 as their owners retire. More than one million are viable candidates for acquisition by employees or outside buyers, representing up to $5 trillion of generational wealth.

Finding the right buyer is one challenge. Financing the purchase is another. In FY26, SBA change-of-ownership loans accounted for 28% of 7(a) lending dollars, totaling $8.2 billion.

Congressman Roger Williams, Chairman of the House Small Business Committee, understands the challenge personally. In an October 29 commentary, he described his family’s experience.

“My own family’s business made it through this transition.

“My father, Jack Williams, opened a Chevrolet dealership in Fort Worth in 1939.

“I came home to work alongside him, and in time, the business became mine to run. It still serves customers today, and I intend to pass it on to children and grandchildren, as my father did to me.”

The Williams family experience is becoming the exception. Fewer than 15% of businesses are passed down within families. A Chase survey found that 40% of small business owners plan to retire within a decade, yet 70% have little or no formal succession plan.

For many owners, the business represents a lifetime of work and retirement security. Without a successor, even a profitable business can disappear. 

One owner’s retirement can become another entrepreneur’s opportunity. A U.S. Bank survey found that 36% of younger entrepreneurs who already own businesses plan to purchase another business from a retiring owner.

Rather than starting from scratch, buyers acquire customers, employees, equipment and a history of earnings.

Williams returns to his family’s experience to explain what is at stake.

“My father’s dealership is still open because someone was ready when the time came.

“With the right planning, more Texas families can say the same, and we can keep Main Street on its feet for generations to come.”

Not every owner will have a son or daughter ready to take over. Millions will need buyers. And many of those buyers will need SBA financing to write the next chapter of Main Street.