{"ok":true,"canonical_url":"https://dealroom.so/glossary/minority-interest","api_url":"https://dealroom.so/api/public/glossary/minority-interest","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-interest","term":"Minority Interest","group":"Reading the business","definition":"A minority interest represents ownership of less than 50% of a company's voting stock or equity.","what_it_means":"If you're acquiring a minority interest in a business, you typically won't have full control over major decisions. For most SBA 7(a) acquisitions, the buyer must acquire a controlling interest (usually 51% or more) to ensure operational control. An exception might apply for partner buyouts where the borrower already has management control.","url":"https://dealroom.so/glossary/minority-interest","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"}],"related":[{"slug":"partner-buyout","term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"},{"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"}],"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":"Can the personal guaranty be limited for certain passive investors or minority owners?","url":"https://dealroom.so/sba-7a/questions/can-the-personal-guaranty-be-limited-for-certain-passive-investors-or-minority-owners"},{"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":"Does the SBA program have any specific requirements for minority or women-owned businesses?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-program-have-any-specific-requirements-for-minority-or-women-owned-businesses"},{"question":"Can I use an SBA 7(a) loan to buy out a minority business partner?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-out-a-minority-business-partner"}]},"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 Interest","url":"https://dealroom.so/glossary/minority-interest","source_type":"DealRoom Data"}}