{"ok":true,"canonical_url":"https://dealroom.so/glossary/minority-partner","api_url":"https://dealroom.so/api/public/glossary/minority-partner","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-partner","term":"Minority Partner","group":"People and paperwork","definition":"A minority partner owns less than 50% of the business, meaning they typically don't have controlling interest. For SBA loans, this impacts guaranty requirements.","what_it_means":"While a minority partner might not have operational control, if they own 20% or more, they are still considered a \"key principal\" by the SBA and will need to provide a personal guarantee for the loan. Clarify all ownership percentages and their associated responsibilities and guarantees upfront.","url":"https://dealroom.so/glossary/minority-partner","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":"sba-form-1919","title":"SBA Form 1919 — Borrower Information Form","official_url":"https://www.sba.gov/document/sba-form-1919-borrower-information-form","official_label":"View on SBA.gov","authority_tier":4,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sba-form-1919"}],"related":[{"slug":"ownership-stake","term":"Ownership Stake","url":"https://dealroom.so/glossary/ownership-stake"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"}],"related_questions":[{"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"},{"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":"Can I use an SBA 7(a) loan to buy out a minority business partner who owns less than 20%?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-buy-out-a-minority-business-partner-who-owns-less-than-20"},{"question":"Can I use an SBA 7(a) loan to buy out a minority partner who owns less than 20% of the business?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-buy-out-a-minority-partner-who-owns-less-than-20-of-the-busin"},{"question":"Can an SBA 7(a) loan be used to buy out a minority partner (e.g., 20% stake) from an existing business?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-buy-out-a-minority-partner-e-g-20-stake-from-an-existing-bu"},{"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"}]},"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 Partner","url":"https://dealroom.so/glossary/minority-partner","source_type":"DealRoom Data"}}