Glossary · Your money in the deal
Majority Ownership
In short
Majority ownership means owning more than 50% of a business. For an SBA loan, this usually triggers the requirement to personally guarantee the loan.
What it means in a deal
As a buyer, acquiring majority ownership means you'll be considered a "key principal" by the SBA and must provide an unlimited personal guarantee. This also means you'll have control over the business's strategic direction and operations, which lenders see as a positive for repayment capacity.
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 Ownership
- 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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