Glossary · People and paperwork
Trust or Estate
In short
These are legal arrangements that can own a business or assets. If a trust or estate is involved as an owner, additional documentation is required to confirm its legal standing and beneficiaries.
What it means in a deal
If the selling business is owned by a Trust or Estate, or if you plan to hold ownership through one, the SBA and lender need to review the governing documents. They must understand who controls the entity and who the ultimate beneficiaries are to ensure eligibility and personal guarantees are properly secured.
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 Trust or Estate
- When does common ownership through a trust or estate create affiliation for size purposes?
- Can a trust or an estate be an eligible borrower for an SBA 7(a) loan?
- Can a trust or estate be an eligible personal guarantor for an SBA 7(a) loan?
- How does a lender determine affiliation for SBA size purposes when a business is controlled by a trust or estate?
- What are the requirements for a trust or estate to be an eligible personal guarantor for an SBA 7(a) loan?
- How does the SBA determine affiliation between businesses controlled by a common trust?
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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