Glossary · Reading the business
Minority Interest
In short
A minority interest represents ownership of less than 50% of a company's voting stock or equity.
What it means in a deal
If you're acquiring a minority interest in a business, you typically won't have full control over major decisions. For most SBA 7(a) acquisitions, the buyer must acquire a controlling interest (usually 51% or more) to ensure operational control. An exception might apply for partner buyouts where the borrower already has management control.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Minority Interest
- When can a minority equity stake still create affiliation for size purposes?
- When does a minority equity stake still create affiliation for size purposes?
- Can the personal guaranty be limited for certain passive investors or minority owners?
- When does a minority equity stake still create affiliation for SBA size purposes?
- Does the SBA program have any specific requirements for minority or women-owned businesses?
- Can I use an SBA 7(a) loan to buy out a minority business partner?
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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