Glossary · People and paperwork
Majority Owner
In short
An individual or entity that owns more than 50% of the voting equity in a business. As a majority owner of the acquired business, you will be required to personally guarantee the SBA 7(a) loan.
What it means in a deal
If you acquire more than 50% ownership, you become a majority owner. All individuals owning 20% or more of the business must provide a personal guarantee, but the majority owner's guarantee is generally mandatory. This ensures you have significant personal stake in the business's success and loan repayment.
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 Majority Owner
- Can I use an SBA 7(a) loan to purchase a majority but not 100% of a business?
- Can an SBA 7(a) loan be used to purchase a majority stake in a business, not 100%?
- Can an SBA 7(a) loan be used to purchase a majority but not 100% of a business?
- Can I use an SBA 7(a) loan to buy out a business partner who holds a majority stake?
- Can an SBA 7(a) loan be used to purchase a majority stake, but not 100%, of a business?
- Can an SBA 7(a) loan finance the purchase of a majority stake, like 75%, in a business instead of 100%?
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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