{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-an-investor-provides-150-000-for-my-equity-injection-does-the-sba-consider-them-an-owne","api_url":"https://dealroom.so/api/public/questions/if-an-investor-provides-150-000-for-my-equity-injection-does-the-sba-consider-them-an-owne","question":"If an investor provides $150,000 for my equity injection, does the SBA consider them an owner needing a personal guaranty?","topic":"Investor Ownership & Guaranty","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, an investor contributing funds for equity injection will be considered an owner and required to provide a personal guaranty if their ownership stake is 20% or more.","rule":"Any individual or entity owning 20% or more of the business must provide a full personal guaranty. If the investor's contribution translates to 20% or more ownership, they fall under this requirement. If less than 20% ownership, a guaranty is usually not required.","example":"If an investor contributes $150,000 for a 25% stake in your $600,000 acquisition, they will be required to sign a personal guaranty. If they contributed $75,000 for a 12.5% stake, a guaranty would likely not be required.","what_lenders_check":"Lenders must identify all 20% or more owners and ensure they provide personal guaranties. This protects the SBA guarantee by ensuring all significant stakeholders are personally liable for the loan.","required_facts":["Investor contribution","Ownership percentage","Personal guaranty","Loan terms"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[],"related_terms":[{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-equity-injection"},{"term":"Equity injection verification","url":"https://dealroom.so/glossary/equity-injection-verification"},{"term":"Investor","url":"https://dealroom.so/glossary/investor"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/if-an-investor-provides-150-000-for-my-equity-injection-does-the-sba-consider-them-an-owne","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}