{"ok":true,"canonical_url":"https://dealroom.so/glossary/private-equity-firm","api_url":"https://dealroom.so/api/public/glossary/private-equity-firm","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":"private-equity-firm","term":"Private Equity Firm","group":"People and paperwork","definition":"A Private Equity (PE) firm invests in companies, often with the goal of improving and reselling them. Most PE firms are too large to qualify as small businesses for an SBA loan, so they aren't your typical buyer for a 7(a) deal.","what_it_means":"While a typical PE firm won't use an SBA 7(a) loan due to size standards and the \"credit elsewhere\" rule, it's possible you might encounter a \"search fund\" or \"searcher\" backed by private equity. Understand their structure, as the SBA has specific rules for these types of buyers to ensure they meet eligibility criteria. Your ownership structure for the acquired business must meet SBA guidelines.","url":"https://dealroom.so/glossary/private-equity-firm","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":"search-fund","term":"Search fund / searcher","url":"https://dealroom.so/glossary/search-fund"},{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"},{"slug":"credit-elsewhere-test","term":"Credit elsewhere test","url":"https://dealroom.so/glossary/credit-elsewhere-test"}],"related_questions":[{"question":"Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-private-equity-firm-count-as-equity-injection-for-an-sba-7-a-loan"},{"question":"When does ownership by a private equity fund trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-ownership-by-a-private-equity-fund-trigger-affiliation-for-sba-size-standard-pur"},{"question":"Can a bridge loan from a private lender count towards the buyer's required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-bridge-loan-from-a-private-lender-count-towards-the-buyer-s-required-equity-injectio"},{"question":"Under what conditions does ownership by a private equity fund trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-does-ownership-by-a-private-equity-fund-trigger-affiliation-for-sba-"},{"question":"Can a private investor provide a loan that counts as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-private-investor-provide-a-loan-that-counts-as-equity-injection-for-an-sba-7-a-loan"},{"question":"Can a subordinated loan from a private third-party investor count as equity injection for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/can-a-subordinated-loan-from-a-private-third-party-investor-count-as-equity-injection-for-"}]},"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 — Private Equity Firm","url":"https://dealroom.so/glossary/private-equity-firm","source_type":"DealRoom Data"}}