{"ok":true,"canonical_url":"https://dealroom.so/glossary/equity-distribution","api_url":"https://dealroom.so/api/public/glossary/equity-distribution","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":"equity-distribution","term":"Equity Distribution","group":"Reading the business","definition":"This refers to how ownership shares and profits are allocated among partners or shareholders in a business.","what_it_means":"If you're buying into a Partnership or LLC with other owners, or forming one, the Equity distribution defines who owns what percentage and how profits are shared. This affects your Personal financial statement and the allocation of Buyer equity in the deal.","url":"https://dealroom.so/glossary/equity-distribution","official_sources":[],"related":[{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"buyer-equity","term":"Buyer Equity","url":"https://dealroom.so/glossary/buyer-equity"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"Can funds from a home equity line of credit be used for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-home-equity-line-of-credit-be-used-for-my-equity-injection"},{"question":"Can I use funds from a home equity line of credit for my 10% equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-home-equity-line-of-credit-for-my-10-equity-injection"},{"question":"How is 'sweat equity' or future services treated for an SBA 7(a) loan equity injection?","url":"https://dealroom.so/sba-7a/questions/how-is-sweat-equity-or-future-services-treated-for-an-sba-7-a-loan-equity-injection"},{"question":"Can sweat equity or future services I provide to the business count towards the required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-sweat-equity-or-future-services-i-provide-to-the-business-count-towards-the-required-e"},{"question":"Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-private-equity-firm-count-as-equity-injection-for-an-sba-7-a-loan"},{"question":"Can a borrower's sweat equity count towards the required equity injection for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-borrower-s-sweat-equity-count-towards-the-required-equity-injection-for-a-7-a-loan"}]},"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 — Equity Distribution","url":"https://dealroom.so/glossary/equity-distribution","source_type":"DealRoom Data"}}