Glossary · People and paperwork
In short
The percentage of a company that an individual or entity owns. This determines control, profit distribution, and liability, directly impacting your role and return on investment.
In an SBA 7(a) deal, anyone with 20% or more Ownership Share is typically considered a Principal (Individual) and must personally guarantee the loan. This means their personal assets are on the line if the business defaults. Understand the implications of your equity injection.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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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