{"ok":true,"canonical_url":"https://dealroom.so/glossary/ownership-share","api_url":"https://dealroom.so/api/public/glossary/ownership-share","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-share","term":"Ownership Share","group":"People and paperwork","definition":"The percentage of a company that an individual or entity owns. This determines control, profit distribution, and liability, directly impacting your role and return on investment.","what_it_means":"In an SBA 7(a) deal, anyone with 20% or more Ownership Share is typically considered a Principal (Individual) and must personally guarantee the loan. This means their personal assets are on the line if the business defaults. Understand the implications of your equity injection.","url":"https://dealroom.so/glossary/ownership-share","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":"principal-individual","term":"Principal (Individual)","url":"https://dealroom.so/glossary/principal-individual"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"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 current business partner's ownership share?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-out-a-current-business-partner-s-ownership-share"},{"question":"How does the SBA determine affiliation between two businesses if they share common management but no common ownership?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-affiliation-between-two-businesses-if-they-share-common-managem"},{"question":"If I'm buying out a partner, can the SBA loan cover the entire 100% of their ownership share?","url":"https://dealroom.so/sba-7a/questions/if-i-m-buying-out-a-partner-can-the-sba-loan-cover-the-entire-100-of-their-ownership-share"},{"question":"What factors are considered when evaluating affiliation between businesses that share common management?","url":"https://dealroom.so/for-lenders/questions/what-factors-are-considered-when-evaluating-affiliation-between-businesses-that-share-comm"},{"question":"How is the valuation of an exiting partner's share handled for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/how-is-the-valuation-of-an-exiting-partner-s-share-handled-for-an-sba-loan"},{"question":"Can an SBA 7(a) loan finance 100% of an existing partner's share buyout?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-100-of-an-existing-partner-s-share-buyout"}]},"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 Share","url":"https://dealroom.so/glossary/ownership-share","source_type":"DealRoom Data"}}