{"ok":true,"canonical_url":"https://dealroom.so/glossary/holding-company","api_url":"https://dealroom.so/api/public/glossary/holding-company","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":"holding-company","term":"Holding Company","group":"People and paperwork","definition":"A holding company is a legal entity that owns shares of other companies but doesn't produce goods or services itself. It's often used for structuring ownership and managing multiple businesses.","what_it_means":"You might establish a holding company to own the operating company you're acquiring, especially if you plan to acquire more businesses later. This can simplify ownership and liability structures. Discuss the optimal legal structure with your attorney.","url":"https://dealroom.so/glossary/holding-company","official_sources":[],"related":[{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"}],"related_questions":[{"question":"Can an SBA 7(a) loan be used to acquire a business that is primarily a holding company?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-acquire-a-business-that-is-primarily-a-holding-company"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a complex organizational structure, like a holding company?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-complex-organizational-structure"},{"question":"Can an SBA 7(a) loan be used to acquire a business that is primarily an investment or passive real estate holding company?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-loan-be-used-to-acquire-a-business-that-is-primarily-an-investment-or-passi"},{"question":"How does a lender verify equity injection funds from a borrower's investment account holding illiquid assets?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-from-a-borrower-s-investment-account-holdi"},{"question":"What are the risks for a lender holding the unguaranteed portion of an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-risks-for-a-lender-holding-the-unguaranteed-portion-of-an-sba-7-a-loan"},{"question":"Does the SBA permit a seller to retain a minority ownership stake while holding a standby note?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-permit-a-seller-to-retain-a-minority-ownership-stake-while-holding-a-standby-"}]},"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 — Holding Company","url":"https://dealroom.so/glossary/holding-company","source_type":"DealRoom Data"}}