{"ok":true,"canonical_url":"https://dealroom.so/glossary/minority-stake","api_url":"https://dealroom.so/api/public/glossary/minority-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-stake","term":"Minority Stake","group":"Doing the deal","definition":"Ownership of less than 50% of a company, meaning you don't have controlling interest. For a small business acquisition, you typically want to buy 100% or a controlling majority.","what_it_means":"SBA 7(a) loans are generally for acquiring a controlling interest, meaning at least 51% ownership. If you're considering a minority stake, it's usually not eligible for a standard 7(a) loan unless it's a specific type of partner buyout where you become the controlling owner. Be clear on your ownership percentage and control.","url":"https://dealroom.so/glossary/minority-stake","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":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"negative-control","term":"Negative control","url":"https://dealroom.so/glossary/negative-control"}],"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":"Can an SBA 7(a) loan finance a partial buyout where the seller retains a minority stake?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-a-partial-buyout-where-the-seller-retains-a-minority-stake"},{"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":"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-"}]},"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 Stake","url":"https://dealroom.so/glossary/minority-stake","source_type":"DealRoom Data"}}