{"ok":true,"canonical_url":"https://dealroom.so/glossary/equity-position","api_url":"https://dealroom.so/api/public/glossary/equity-position","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-position","term":"Equity Position","group":"Your money in the deal","definition":"This refers to the percentage of ownership an individual holds in a business. It determines control, profit share, and personal guarantee requirements for SBA loans.","what_it_means":"For an SBA loan, anyone with a 20% or greater equity position in the borrowing entity must provide a personal guarantee. Understand your and any partners' equity positions early to manage personal guarantee obligations. This also dictates your share of the business's future profits.","url":"https://dealroom.so/glossary/equity-position","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":"minority-ownership","term":"Minority Ownership","url":"https://dealroom.so/glossary/minority-ownership"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"legal-entity-structure","term":"Legal Entity Structure","url":"https://dealroom.so/glossary/legal-entity-structure"},{"slug":"capital-contribution","term":"Capital Contribution","url":"https://dealroom.so/glossary/capital-contribution"}],"related_questions":[{"question":"What is the SBA's general requirement for lien position on business collateral?","url":"https://dealroom.so/for-lenders/questions/what-is-the-sba-s-general-requirement-for-lien-position-on-business-collateral"},{"question":"What is the SBA's requirement for a buyer's post-closing working capital position?","url":"https://dealroom.so/sba-7a/questions/what-is-the-sba-s-requirement-for-a-buyer-s-post-closing-working-capital-position"},{"question":"When can a second lien position be acceptable for specific assets on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-can-a-second-lien-position-be-acceptable-for-specific-assets-on-a-7-a-loan"},{"question":"What are the SBA's requirements for obtaining a first lien position on all principal business assets?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-requirements-for-obtaining-a-first-lien-position-on-all-principal-busin"},{"question":"Does the SBA always require a first lien position on all business assets for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-always-require-a-first-lien-position-on-all-business-assets-for-an-acquisitio"},{"question":"How does the SBA view a second lien position on real estate collateral for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-view-a-second-lien-position-on-real-estate-collateral-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 Position","url":"https://dealroom.so/glossary/equity-position","source_type":"DealRoom Data"}}