Glossary · Your money in the deal
Equity Stake
In short
This refers to the ownership percentage you hold in the acquired business. It represents your direct investment and control.
What it means in a deal
Your equity injection into the deal gives you an equity stake in the operating company. The SBA requires a minimum equity injection, often 10-15% of the total project costs, to ensure you have "skin in the game." This is your ownership.
Official sources
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.
Related terms
Common questions about Equity Stake
- When can a minority equity stake still create affiliation for size purposes?
- When does a minority equity stake still create affiliation for size purposes?
- When does a minority equity stake still create affiliation for SBA size purposes?
- If an investor provides equity for my business acquisition, must they take an ownership stake?
- What if my existing ownership stake is valued as part of the equity injection for a buyout?
- What if the seller remains as a passive investor with a minority equity stake in an acquisition?
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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