How does a minority partnership work for SBA loans?

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December 29, 2025

by a searcher from Western Governors University in Miami, Florida, United States

If there's a partner who wants to join the deal and buy 19% of the company - do they need to provide PG? How do you send a message to the seller that you have a good partner (let's say with experience in the industry)
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Reply by a lender
from Cornell University in Los Angeles, CA, USA
Hi ^redacted‌ - happy to answer this question for you. Happy to clarify. I’d suggest keeping the equity to around 15%-18%. That way, it doesn’t look like the minority partner is only set up to avoid signing a personal guarantee, which lenders may question. We have a lot experience financing various companies via the SBA. If you ever need help talking through a deal, I am happy to help. We work with all the major SBA lenders. The bank pay us after your loan closes, so this is a 100% free service for you.You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!
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Reply by a searcher
in Orlando, FL, USA
from the lenders I've talked to, you aren't going to skate with "19%" - they'll treat it as 20% and require a PG.
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