{"ok":true,"canonical_url":"https://dealroom.so/glossary/minority-owner","api_url":"https://dealroom.so/api/public/glossary/minority-owner","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-owner","term":"Minority owner","group":"Doing the deal","definition":"An individual or entity that owns less than 50% of a business, meaning they don't have controlling interest.","what_it_means":"If you're acquiring a business where a seller retains a minority stake, or if you have a partner who is a minority owner, understand their role and any agreements. SBA rules usually require all owners with 20% or more equity to personally guarantee the loan, regardless of majority status.","url":"https://dealroom.so/glossary/minority-owner","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":"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"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"}],"related_questions":[{"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":"Can a corporate entity provide a guaranty instead of a personal one for some minority owners?","url":"https://dealroom.so/sba-7a/questions/can-a-corporate-entity-provide-a-guaranty-instead-of-a-personal-one-for-some-minority-owne"},{"question":"Can a 7(a) loan be used to pay out a portion of the seller's equity at closing, even if they remain a minority owner?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-be-used-to-pay-out-a-portion-of-the-seller-s-equity-at-closing-even-if-they"},{"question":"Does the SBA permit a seller to retain a minority ownership stake while holding a standby note?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-permit-a-seller-to-retain-a-minority-ownership-stake-while-holding-a-standby-"},{"question":"Can an SBA 7(a) loan be used to buy out a minority partner with less than 20% ownership?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-buy-out-a-minority-partner-with-less-than-20-ownership"},{"question":"What is required if the seller in a change-of-ownership 7(a) loan transaction retains a minority equity stake?","url":"https://dealroom.so/for-lenders/questions/what-is-required-if-the-seller-in-a-change-of-ownership-7-a-loan-transaction-retains-a-min"}]},"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 owner","url":"https://dealroom.so/glossary/minority-owner","source_type":"DealRoom Data"}}