{"ok":true,"canonical_url":"https://dealroom.so/glossary/key-management-personnel","api_url":"https://dealroom.so/api/public/glossary/key-management-personnel","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":"key-management-personnel","term":"Key Management Personnel","group":"People and paperwork","definition":"These are individuals critical to the operation and success of a business, often including owners, officers, and top executives. Buyers care because the SBA assesses their character and requires life insurance for those vital to loan repayment.","what_it_means":"All key management personnel who own 20% or more of the business must meet the SBA's character requirements and often undergo background checks. Lenders typically require key man insurance on these individuals to protect the loan in case of their unexpected death or disability.","url":"https://dealroom.so/glossary/key-management-personnel","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":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"},{"slug":"character-and-background-checks","term":"Character and Background Checks","url":"https://dealroom.so/glossary/character-and-background-checks"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[{"question":"What specific scenarios involving shared directors, officers, or key employees constitute 'common management' triggering affiliation for SBA size determination?","url":"https://dealroom.so/for-lenders/questions/what-specific-scenarios-involving-shared-directors-officers-or-key-employees-constitute-co"},{"question":"If a key management employee who is not an owner is a foreign national, does this affect SBA 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/if-a-key-management-employee-who-is-not-an-owner-is-a-foreign-national-does-this-affect-sb"},{"question":"How does the SBA verify my business management experience?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-verify-my-business-management-experience"},{"question":"Is previous business ownership or management experience required to qualify?","url":"https://dealroom.so/sba-loans/basics/is-previous-business-ownership-or-management-experience-required-to-qualify"},{"question":"How does common management trigger affiliation for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-common-management-trigger-affiliation-for-size-standard-purposes"},{"question":"How does the SBA define \"management experience\" for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-management-experience-for-a-business-acquisition"}]},"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 — Key Management Personnel","url":"https://dealroom.so/glossary/key-management-personnel","source_type":"DealRoom Data"}}