{"ok":true,"canonical_url":"https://dealroom.so/glossary/majority-ownership","api_url":"https://dealroom.so/api/public/glossary/majority-ownership","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":"majority-ownership","term":"Majority Ownership","group":"Your money in the deal","definition":"Majority ownership means owning more than 50% of a business. For an SBA loan, this usually triggers the requirement to personally guarantee the loan.","what_it_means":"As a buyer, acquiring majority ownership means you'll be considered a \"key principal\" by the SBA and must provide an unlimited personal guarantee. This also means you'll have control over the business's strategic direction and operations, which lenders see as a positive for repayment capacity.","url":"https://dealroom.so/glossary/majority-ownership","official_sources":[{"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"},{"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"}],"related":[{"slug":"personally-liable","term":"Personally Liable","url":"https://dealroom.so/glossary/personally-liable"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"management-control","term":"Management Control","url":"https://dealroom.so/glossary/management-control"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"Can I use an SBA 7(a) loan to purchase a majority but not 100% of a business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-purchase-a-majority-but-not-100-of-a-business"},{"question":"Can an SBA 7(a) loan be used to purchase a majority stake in a business, not 100%?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-majority-stake-in-a-business-not-100"},{"question":"Can an SBA 7(a) loan be used to purchase a majority but not 100% of a business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-majority-but-not-100-of-a-business"},{"question":"Can I use an SBA 7(a) loan to buy out a business partner who holds a majority stake?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-buy-out-a-business-partner-who-holds-a-majority-stake"},{"question":"Can an SBA 7(a) loan be used to purchase a majority stake, but not 100%, of a business?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-majority-stake-but-not-100-of-a-business"},{"question":"Can an SBA 7(a) loan finance the purchase of a majority stake, like 75%, in a business instead of 100%?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-purchase-of-a-majority-stake-like-75-in-a-business-instead"}]},"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 — Majority Ownership","url":"https://dealroom.so/glossary/majority-ownership","source_type":"DealRoom Data"}}