Glossary · People and paperwork
In short
How a business is legally organized and who owns what percentage (e.g., sole proprietorship, LLC, corporation). This dictates how the business is bought and managed.
Understanding the seller's ownership structure is critical because it determines whether you're doing an asset purchase or a stock purchase. Your SBA lender will review the ownership structure to identify all "key principals" and guarantors. Verify all owners are properly identified and agree to the sale terms.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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