Glossary · People and paperwork
Investor Agreement
In short
A legal contract between the business owner(s) and investors, detailing the terms of the investment, ownership stakes, rights, and responsibilities. It clarifies the relationship and expectations.
What it means in a deal
If you're bringing in outside investors for your equity injection, an investor agreement is essential. This document will be reviewed by the SBA lender to ensure compliance with SBA rules regarding control and capital structure. Make sure it aligns with SBA standby requirements if investor debt is involved.
Official sources
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 Agreement
- What specific terms must a lender ensure are included in a standby agreement for a loan from an investor that counts as equity?
- 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?
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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