Glossary · People and paperwork
In short
Any individual who owns 20% or more of the business, or holds a position of significant influence or control.
This includes owners, officers, directors, or anyone else with substantial management authority. The SBA requires all key principals to provide personal financial information, undergo credit checks, and typically sign a personal guarantee for the loan. Their character and financial health are critical to loan approval.
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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