Glossary · People and paperwork
Business partnership
In short
This is a business structure where two or more individuals agree to share in the profits or losses of a business. It defines ownership, responsibilities, and liability among the partners.
What it means in a deal
If you're buying a business with a partner, the SBA lender will assess the creditworthiness and character of all key principals. You'll need a clear partnership agreement outlining roles and equity, and each partner will likely provide a personal guarantee for the SBA loan.
Related terms
Common questions about Business partnership
- Does the SBA guarantee protect me, the business owner, if my business fails?
- For general business protection, should the business or individual owners own the life insurance policy?
- Does the SBA require an independent business appraisal for a business acquisition costing $400,000?
- What documentation is required if a business owner contributes pre-existing business equipment as equity?
- Can a new business owner use an SBA 7(a) loan to refinance existing business debt?
- Can a business owner's personal assets be used as collateral if business assets are limited?
Defined by CapBench 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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