Glossary · People and paperwork
In short
An investor in a business who shares in profits or losses but does not take an active role in management. They typically provide capital without operational input.
For an SBA loan, a silent partner's investment counts towards equity injection, provided the funds are unencumbered. Ensure their role is clearly defined in operating agreements to avoid future disputes, especially regarding decision-making authority.
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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