Glossary · People and paperwork
Ownership interest
In short
This is the percentage or share you hold in the business, which determines your control and share of profits. For SBA loans, your personal ownership stake is a critical factor.
What it means in a deal
When buying a business with an SBA 7(a) loan, you'll acquire a specific ownership interest, often 100% in a direct acquisition. All individuals owning 20% or more of the business must personally guarantee the loan. Clarify the legal structure (LLC, Corporation) and how your ownership is documented.
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 Ownership interest
- What is the specific look-back period for prior ownership interests when determining affiliation for a 7(a) loan?
- When does common ownership by an Employee Stock Ownership Plan (ESOP) trigger affiliation for size determination?
- How does the SBA handle a seller's retained ownership in a change-of-ownership transaction?
- How does the SBA handle a seller's retained ownership in a 7(a) change-of-ownership transaction?
- Is previous business ownership or management experience required to qualify?
- Does a partner buyout require 100% ownership by the acquiring individual?
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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