{"ok":true,"canonical_url":"https://dealroom.so/glossary/equity-owner","api_url":"https://dealroom.so/api/public/glossary/equity-owner","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-owner","term":"Equity Owner","group":"People and paperwork","definition":"An individual or entity that owns a portion of a business, typically through shares or membership units. For an SBA loan, equity owners are usually required to personally guarantee the loan.","what_it_means":"In a 7(a) acquisition, all individuals owning 20% or more of the business must sign a personal guaranty. This ensures they are fully committed and share the risk with the lender and SBA. You'll need to identify all such owners during due diligence and ensure their involvement.","url":"https://dealroom.so/glossary/equity-owner","official_sources":[{"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"},{"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"}],"related":[{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"sole-proprietor","term":"Sole proprietor","url":"https://dealroom.so/glossary/sole-proprietor"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"}],"related_questions":[{"question":"How is prior owner debt converted to equity treated for injection purposes?","url":"https://dealroom.so/for-lenders/questions/how-is-prior-owner-debt-converted-to-equity-treated-for-injection-purposes"},{"question":"Can investor funds from non-owner individuals be used for the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-investor-funds-from-non-owner-individuals-be-used-for-the-equity-injection"},{"question":"How does the SBA view prior owner debt converted to equity for injection purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-view-prior-owner-debt-converted-to-equity-for-injection-purposes"},{"question":"What documentation is needed if an institutional investor provides equity but is not an owner?","url":"https://dealroom.so/sba-7a/questions/what-documentation-is-needed-if-an-institutional-investor-provides-equity-but-is-not-an-ow"},{"question":"What documentation is required if a business owner contributes pre-existing business equipment as equity?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-if-a-business-owner-contributes-pre-existing-business-equip"},{"question":"How does the SBA verify a non-owner investor's funds used for equity injection?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-a-non-owner-investor-s-funds-used-for-equity-injection"}]},"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 Owner","url":"https://dealroom.so/glossary/equity-owner","source_type":"DealRoom Data"}}