{"ok":true,"canonical_url":"https://dealroom.so/glossary/minority-equity-stake","api_url":"https://dealroom.so/api/public/glossary/minority-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":"minority-equity-stake","term":"Minority Equity Stake","group":"Your money in the deal","definition":"This is an ownership share in the business that is less than 50%, meaning you don't have controlling interest. For SBA loans, it typically refers to the portion of equity injection that isn't from the primary borrower.","what_it_means":"If you have partners, or if the seller retains a small portion of equity post-acquisition, these are minority equity stakes. The SBA scrutinizes all equity injections to ensure they are from eligible sources. Any minority owners must also meet SBA eligibility requirements and may need to personally guarantee the loan if they own 20% or more.","url":"https://dealroom.so/glossary/minority-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":"capital-injection","term":"Capital Injection","url":"https://dealroom.so/glossary/capital-injection"},{"slug":"partner-buyout","term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"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":"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"},{"question":"If the seller retains a minority equity stake in the business, does that count towards my 10% injection?","url":"https://dealroom.so/sba-7a/questions/if-the-seller-retains-a-minority-equity-stake-in-the-business-does-that-count-towards-my-1"},{"question":"What if a seller of a business retains a minority equity stake in the company after a 7(a) acquisition?","url":"https://dealroom.so/for-lenders/questions/what-if-a-seller-of-a-business-retains-a-minority-equity-stake-in-the-company-after-a-7-a-"}]},"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 — Minority Equity Stake","url":"https://dealroom.so/glossary/minority-equity-stake","source_type":"DealRoom Data"}}