{"ok":true,"canonical_url":"https://dealroom.so/glossary/investor","api_url":"https://dealroom.so/api/public/glossary/investor","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":"investor","term":"Investor","group":"People and paperwork","definition":"An individual or entity that provides capital in exchange for an ownership stake or a return on their money. Investors can be a source of equity for your acquisition.","what_it_means":"If you bring in investors for your equity injection, the SBA has rules about how this capital can be structured. Investors cannot have \"negative control\" over the business, and their funds must meet seasoning requirements. Any investor debt must be on full standby.","url":"https://dealroom.so/glossary/investor","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":"investor-agreement","term":"Investor Agreement","url":"https://dealroom.so/glossary/investor-agreement"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"},{"slug":"seasoned-funds","term":"Seasoned funds","url":"https://dealroom.so/glossary/seasoned-funds"}],"related_questions":[{"question":"Can an investor fund my SBA 7(a) down payment?","url":"https://dealroom.so/sba-7a/questions/can-an-investor-fund-my-sba-7-a-down-payment"},{"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":"Can funds gifted by a non-family investor contribute to my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-gifted-by-a-non-family-investor-contribute-to-my-equity-injection"},{"question":"Can gift funds from a non-family investor count towards my down payment?","url":"https://dealroom.so/sba-7a/questions/can-gift-funds-from-a-non-family-investor-count-towards-my-down-payment"},{"question":"When does a convertible note held by an investor trigger affiliation for size standards?","url":"https://dealroom.so/for-lenders/questions/when-does-a-convertible-note-held-by-an-investor-trigger-affiliation-for-size-standards"},{"question":"Can an institutional investor's cash contribution count towards my SBA 7(a) equity injection?","url":"https://dealroom.so/sba-7a/questions/can-an-institutional-investor-s-cash-contribution-count-towards-my-sba-7-a-equity-injectio"}]},"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 — Investor","url":"https://dealroom.so/glossary/investor","source_type":"DealRoom Data"}}