{"ok":true,"canonical_url":"https://dealroom.so/glossary/economic-interests","api_url":"https://dealroom.so/api/public/glossary/economic-interests","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"economic-interests","term":"economic interests","group":"Reading the business","definition":"Any financial stake, ownership, or benefit that an individual or entity has in a business. For an SBA loan, these must be fully disclosed to identify potential conflicts or affiliations.","what_it_means":"The SBA scrutinizes economic interests to determine if entities are \"affiliated,\" which can impact eligibility and size standards. This includes ownership stakes, profit-sharing arrangements, and rights to acquire ownership. You and the seller must disclose all relevant economic interests to avoid issues with the SBA's affiliation rules.","url":"https://dealroom.so/glossary/economic-interests","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"},{"slug":"financial-ties","term":"financial ties","url":"https://dealroom.so/glossary/financial-ties"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"negative-control","term":"Negative control","url":"https://dealroom.so/glossary/negative-control"}],"related_questions":[{"question":"How does the SBA require lenders to perfect security interests on accounts receivable and inventory?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-require-lenders-to-perfect-security-interests-on-accounts-receivable-and-"},{"question":"How does a lender determine affiliation for size purposes when evaluating common economic dependence?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-affiliation-for-size-purposes-when-evaluating-common-economic-"},{"question":"Can I use a conditional grant from a local economic development agency as equity?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-conditional-grant-from-a-local-economic-development-agency-as-equity"},{"question":"Under what conditions does a shared economic interest trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-does-a-shared-economic-interest-trigger-affiliation-for-sba-size-sta"},{"question":"What is the specific look-back period for prior ownership interests when determining affiliation for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-look-back-period-for-prior-ownership-interests-when-determining-affil"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — economic interests","url":"https://dealroom.so/glossary/economic-interests","source_type":"DealRoom Data"}}