Glossary · People and paperwork
In short
An individual who co-owns a business with one or more others, typically sharing profits, losses, and management responsibilities. Their relationship is usually defined by a partnership agreement.
When acquiring a business structured as a partnership, you'll need to understand the existing partnership agreement and how the seller's interest will be transferred. The SBA requires all partners with 20% or more ownership to personally guarantee the loan, so identify all key partners.
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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