Glossary · People and paperwork
In short
Any individual owning 20% or more of the business, or who holds a key management role. These individuals are heavily scrutinized by the SBA due to their influence and required personal guarantees.
For an SBA 7(a) loan, all Principals must complete SBA Form 1919 and undergo character and credit checks. They are also required to provide a Personal Guarantee for the loan, putting their personal assets at risk. Understand that this extends beyond just equity owners to key managers.
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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