Glossary · Your money in the deal
In short
This refers to any stake an individual or entity has in the business, whether through ownership, debt, or other arrangements. For buyers, it defines who needs to be part of the deal structure, especially regarding equity injection and guaranties.
The SBA defines "Financial Interest" broadly, including equity holders, those with management roles, and sometimes even lenders to the business. Anyone with a 20% or more Financial Interest in the borrower entity must personally guarantee the loan. Less than 20% might still require a guaranty if they have significant control.
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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