{"ok":true,"canonical_url":"https://dealroom.so/glossary/ownership-stake","api_url":"https://dealroom.so/api/public/glossary/ownership-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":"ownership-stake","term":"Ownership Stake","group":"Your money in the deal","definition":"This refers to the percentage of the business you own. It determines your control, rights to profits, and responsibilities within the company.","what_it_means":"For an SBA 7(a) loan, any individual owning 20% or more of the business is generally considered a \"key principal\" and must personally guarantee the loan. Your ownership stake directly impacts your personal liability and decision-making power. Be clear on all equity agreements.","url":"https://dealroom.so/glossary/ownership-stake","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":"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"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"}],"related_questions":[{"question":"If an investor provides equity for my business acquisition, must they take an ownership stake?","url":"https://dealroom.so/sba-7a/questions/if-an-investor-provides-equity-for-my-business-acquisition-must-they-take-an-ownership-sta"},{"question":"What if my existing ownership stake is valued as part of the equity injection for a buyout?","url":"https://dealroom.so/sba-7a/questions/what-if-my-existing-ownership-stake-is-valued-as-part-of-the-equity-injection-for-a-buyout"},{"question":"When buying out a partner, how does the SBA assess the value of my existing ownership stake?","url":"https://dealroom.so/sba-7a/questions/when-buying-out-a-partner-how-does-the-sba-assess-the-value-of-my-existing-ownership-stake"},{"question":"If my ownership stake is less than 20%, do I still need to personally guarantee the loan?","url":"https://dealroom.so/sba-7a/questions/if-my-ownership-stake-is-less-than-20-do-i-still-need-to-personally-guarantee-the-loan"},{"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-"},{"question":"Do all individuals with an ownership stake of 20% or more need to provide a full personal guaranty?","url":"https://dealroom.so/sba-7a/questions/do-all-individuals-with-an-ownership-stake-of-20-or-more-need-to-provide-a-full-personal-g"}]},"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 Stake","url":"https://dealroom.so/glossary/ownership-stake","source_type":"DealRoom Data"}}