{"ok":true,"canonical_url":"https://dealroom.so/glossary/ownership-interest","api_url":"https://dealroom.so/api/public/glossary/ownership-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":"ownership-interest","term":"Ownership interest","group":"People and paperwork","definition":"This is the percentage or share you hold in the business, which determines your control and share of profits. For SBA loans, your personal ownership stake is a critical factor.","what_it_means":"When buying a business with an SBA 7(a) loan, you'll acquire a specific ownership interest, often 100% in a direct acquisition. All individuals owning 20% or more of the business must personally guarantee the loan. Clarify the legal structure (LLC, Corporation) and how your ownership is documented.","url":"https://dealroom.so/glossary/ownership-interest","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":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"}],"related_questions":[{"question":"What is the specific look-back period for prior ownership interests when determining affiliation for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-look-back-period-for-prior-ownership-interests-when-determining-affil"},{"question":"When does common ownership by an Employee Stock Ownership Plan (ESOP) trigger affiliation for size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-common-ownership-by-an-employee-stock-ownership-plan-esop-trigger-affiliation-fo"},{"question":"How does the SBA handle a seller's retained ownership in a change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-handle-a-seller-s-retained-ownership-in-a-change-of-ownership-transaction"},{"question":"How does the SBA handle a seller's retained ownership in a 7(a) change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-handle-a-seller-s-retained-ownership-in-a-7-a-change-of-ownership-transac"},{"question":"Is previous business ownership or management experience required to qualify?","url":"https://dealroom.so/sba-loans/basics/is-previous-business-ownership-or-management-experience-required-to-qualify"},{"question":"Does a partner buyout require 100% ownership by the acquiring individual?","url":"https://dealroom.so/sba-7a/questions/does-a-partner-buyout-require-100-ownership-by-the-acquiring-individual"}]},"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 — Ownership interest","url":"https://dealroom.so/glossary/ownership-interest","source_type":"DealRoom Data"}}