Glossary · People and paperwork
In short
An individual or entity that owns a portion of a business, typically through shares or membership units. For an SBA loan, equity owners are usually required to personally guarantee the loan.
In a 7(a) acquisition, all individuals owning 20% or more of the business must sign a personal guaranty. This ensures they are fully committed and share the risk with the lender and SBA. You'll need to identify all such owners during due diligence and ensure their involvement.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
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.
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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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