Glossary · People and paperwork
In short
Someone who invests capital in the business but does not participate in its daily management or operations. Their investment counts towards equity but doesn't qualify them as an owner-operator for SBA purposes.
While non-owner investors can contribute to your equity injection, the SBA requires that the primary borrower (you) be actively involved in the business. Any non-owner investor's funds must be unencumbered and properly documented as equity. Be aware of the SBA's affiliation rules regarding ownership stakes.
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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