Glossary · Reading the business
Equity Distribution
In short
This refers to how ownership shares and profits are allocated among partners or shareholders in a business.
What it means in a deal
If you're buying into a Partnership or LLC with other owners, or forming one, the Equity distribution defines who owns what percentage and how profits are shared. This affects your Personal financial statement and the allocation of Buyer equity in the deal.
Related terms
Common questions about Equity Distribution
- Can life insurance be used to ensure fair distribution of assets among non-active heirs in a family business?
- Can funds from a home equity line of credit be used for my equity injection?
- Can I use funds from a home equity line of credit for my 10% equity injection?
- How is 'sweat equity' or future services treated for an SBA 7(a) loan equity injection?
- Can sweat equity or future services I provide to the business count towards the required equity injection?
- Can funds from a private equity firm count as equity injection for an SBA 7(a) loan?
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.