{"ok":true,"canonical_url":"https://dealroom.so/glossary/pro-rata-share","api_url":"https://dealroom.so/api/public/glossary/pro-rata-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":"pro-rata-share","term":"Pro-Rata Share","group":"Doing the deal","definition":"A proportional distribution, meaning each party receives an amount based on their share of the whole. This concept often applies to distributions or payments among multiple stakeholders.","what_it_means":"In some business structures or when distributing proceeds, payments might be made on a pro-rata share basis. For SBA loans, if multiple lenders or creditors hold different liens on collateral, asset recovery might be distributed pro-rata based on their lien priority or agreement. It means you get what's proportional to your stake.","url":"https://dealroom.so/glossary/pro-rata-share","official_sources":[],"related":[{"slug":"asset-recovery","term":"Asset Recovery","url":"https://dealroom.so/glossary/asset-recovery"},{"slug":"lien-priority","term":"Lien priority","url":"https://dealroom.so/glossary/lien-priority"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"}],"related_questions":[{"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"},{"question":"Can I use an SBA 7(a) loan to buy out a business partner's share?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-out-a-business-partner-s-share"},{"question":"Can I use an SBA 7(a) loan to buy out a departing business partner's share?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-out-a-departing-business-partner-s-share"},{"question":"When buying out a partner, how does the SBA ensure the purchase price for their share is fair?","url":"https://dealroom.so/sba-7a/questions/when-buying-out-a-partner-how-does-the-sba-ensure-the-purchase-price-for-their-share-is-fa"}]},"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 — Pro-Rata Share","url":"https://dealroom.so/glossary/pro-rata-share","source_type":"DealRoom Data"}}