Glossary · People and paperwork
In short
This is a business structure where two or more individuals agree to share in the profits or losses of a business. It defines ownership, responsibilities, and liability among the partners.
If you're buying a business with a partner, the SBA lender will assess the creditworthiness and character of all key principals. You'll need a clear partnership agreement outlining roles and equity, and each partner will likely provide a personal guarantee for the SBA loan.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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