Glossary · People and paperwork
Voting trust
In short
An agreement where shareholders transfer their voting rights to a trustee for a specific period. This consolidates voting power, which you need to understand if it affects control or decision-making in the target business.
What it means in a deal
While uncommon in small business acquisitions, if a voting trust exists, you must thoroughly understand its terms and duration. Ensure it will not prevent you from exercising full control post-acquisition or complicate the ownership transfer process. Review the trust agreement meticulously during due diligence.
Related terms
Common questions about Voting trust
- For a business owned by a trust, what citizenship and residency requirements apply to the trustee for 7(a) eligibility?
- Can a business owned by a trust be eligible for a 7(a) loan if the trustee is a foreign national?
- How does the SBA determine affiliation between businesses controlled by a common trust?
- When does common ownership through a trust or estate create affiliation for size purposes?
- Can I use inherited money that is currently in a trust to fund my equity injection?
- Can a trust or an estate be an eligible borrower for an SBA 7(a) loan?
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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