Glossary · Your money in the deal
In short
This refers to the percentage of the business you own. It determines your control, rights to profits, and responsibilities within the company.
For an SBA 7(a) loan, any individual owning 20% or more of the business is generally considered a "key principal" and must personally guarantee the loan. Your ownership stake directly impacts your personal liability and decision-making power. Be clear on all equity agreements.
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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