{"ok":true,"canonical_url":"https://dealroom.so/glossary/equity-stake","api_url":"https://dealroom.so/api/public/glossary/equity-stake","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-stake","term":"Equity Stake","group":"Your money in the deal","definition":"This refers to the ownership percentage you hold in the acquired business. It represents your direct investment and control.","what_it_means":"Your equity injection into the deal gives you an equity stake in the operating company. The SBA requires a minimum equity injection, often 10-15% of the total project costs, to ensure you have \"skin in the game.\" This is your ownership.","url":"https://dealroom.so/glossary/equity-stake","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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"capital-contribution","term":"Capital Contribution","url":"https://dealroom.so/glossary/capital-contribution"},{"slug":"investment-agreement","term":"Investment Agreement","url":"https://dealroom.so/glossary/investment-agreement"}],"related_questions":[{"question":"When can a minority equity stake still create affiliation for size purposes?","url":"https://dealroom.so/for-lenders/questions/when-can-a-minority-equity-stake-still-create-affiliation-for-size-purposes"},{"question":"When does a minority equity stake still create affiliation for size purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-a-minority-equity-stake-still-create-affiliation-for-size-purposes"},{"question":"When does a minority equity stake still create affiliation for SBA size purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-a-minority-equity-stake-still-create-affiliation-for-sba-size-purposes"},{"question":"If an investor provides equity for my business acquisition, must they take an ownership stake?","url":"https://dealroom.so/sba-7a/questions/if-an-investor-provides-equity-for-my-business-acquisition-must-they-take-an-ownership-sta"},{"question":"What if my existing ownership stake is valued as part of the equity injection for a buyout?","url":"https://dealroom.so/sba-7a/questions/what-if-my-existing-ownership-stake-is-valued-as-part-of-the-equity-injection-for-a-buyout"},{"question":"What if the seller remains as a passive investor with a minority equity stake in an acquisition?","url":"https://dealroom.so/for-lenders/questions/what-if-the-seller-remains-as-a-passive-investor-with-a-minority-equity-stake-in-an-acquis"}]},"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 Stake","url":"https://dealroom.so/glossary/equity-stake","source_type":"DealRoom Data"}}