Glossary · Doing the deal
Pro-Rata Share
In short
A proportional distribution, meaning each party receives an amount based on their share of the whole. This concept often applies to distributions or payments among multiple stakeholders.
What it means in a deal
In some business structures or when distributing proceeds, payments might be made on a pro-rata share basis. For SBA loans, if multiple lenders or creditors hold different liens on collateral, asset recovery might be distributed pro-rata based on their lien priority or agreement. It means you get what's proportional to your stake.
Related terms
Common questions about Pro-Rata Share
- What factors are considered when evaluating affiliation between businesses that share common management?
- How is the valuation of an exiting partner's share handled for an SBA loan?
- Can an SBA 7(a) loan finance 100% of an existing partner's share buyout?
- Can I use an SBA 7(a) loan to buy out a business partner's share?
- Can I use an SBA 7(a) loan to buy out a departing business partner's share?
- When buying out a partner, how does the SBA ensure the purchase price for their share is fair?
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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