{"ok":true,"canonical_url":"https://dealroom.so/glossary/non-owner-investor","api_url":"https://dealroom.so/api/public/glossary/non-owner-investor","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":"non-owner-investor","term":"Non-Owner Investor","group":"People and paperwork","definition":"Someone who invests capital in the business but does not participate in its daily management or operations. Their investment counts towards equity but doesn't qualify them as an owner-operator for SBA purposes.","what_it_means":"While non-owner investors can contribute to your equity injection, the SBA requires that the primary borrower (you) be actively involved in the business. Any non-owner investor's funds must be unencumbered and properly documented as equity. Be aware of the SBA's affiliation rules regarding ownership stakes.","url":"https://dealroom.so/glossary/non-owner-investor","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":"affiliation","term":"Affiliation","url":"https://dealroom.so/glossary/affiliation"},{"slug":"minority-stake","term":"Minority Stake","url":"https://dealroom.so/glossary/minority-stake"},{"slug":"qualified-alien","term":"Qualified Alien","url":"https://dealroom.so/glossary/qualified-alien"}],"related_questions":[{"question":"Can investor funds from non-owner individuals be used for the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-investor-funds-from-non-owner-individuals-be-used-for-the-equity-injection"},{"question":"How does the SBA verify a non-owner investor's funds used for equity injection?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-verify-a-non-owner-investor-s-funds-used-for-equity-injection"},{"question":"If a non-owner investor provides funds for my equity injection, what documentation do they need to provide?","url":"https://dealroom.so/sba-7a/questions/if-a-non-owner-investor-provides-funds-for-my-equity-injection-what-documentation-do-they-"},{"question":"Can funds from a non-owner investor be used for the equity injection, and what are the requirements?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-non-owner-investor-be-used-for-the-equity-injection-and-what-are-the-requ"},{"question":"How does the SBA verify a non-owner investor's funds used for equity injection if they are not a guarantor?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-verify-a-non-owner-investor-s-funds-used-for-equity-injection-if-they-are"},{"question":"Are funds from a non-U.S. citizen or non-resident investor acceptable for equity injection?","url":"https://dealroom.so/sba-7a/questions/are-funds-from-a-non-u-s-citizen-or-non-resident-investor-acceptable-for-equity-injection"}]},"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 — Non-Owner Investor","url":"https://dealroom.so/glossary/non-owner-investor","source_type":"DealRoom Data"}}