Glossary · Your money in the deal
In short
This refers to the percentage of ownership an individual holds in a business. It determines control, profit share, and personal guarantee requirements for SBA loans.
For an SBA loan, anyone with a 20% or greater equity position in the borrowing entity must provide a personal guarantee. Understand your and any partners' equity positions early to manage personal guarantee obligations. This also dictates your share of the business's future profits.
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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