Glossary · People and paperwork
Investor
In short
An individual or entity that provides capital in exchange for an ownership stake or a return on their money. Investors can be a source of equity for your acquisition.
What it means in a deal
If you bring in investors for your equity injection, the SBA has rules about how this capital can be structured. Investors cannot have "negative control" over the business, and their funds must meet seasoning requirements. Any investor debt must be on full standby.
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 Investor
- Can an investor fund my SBA 7(a) down payment?
- Can investor funds from non-owner individuals be used for the equity injection?
- Can funds gifted by a non-family investor contribute to my equity injection?
- Can gift funds from a non-family investor count towards my down payment?
- When does a convertible note held by an investor trigger affiliation for size standards?
- Can an institutional investor's cash contribution count towards my SBA 7(a) equity injection?
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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