Hi everyone, I’m working through a potential SBA 7(a)-backed acquisition and would love input from anyone who’s structured something similar or has insight into how the SBA/lenders view this scenario. Let’s say the total required equity injection is $300K on a ~$3M deal. I’m relatively early in my career and have around $100K in liquid capital. I’d like to contribute $30K–$75K personally, and raise the remainder from a small group of passive capital partners. I’m exploring whether it’s possible to structure the equity so that I would be the sole SBA guarantor — and none of the passive investors would need to guarantee. The structure I’m considering looks like this: - I would own 100% of the common voting equity in the operating company. - Passive investors would contribute capital in exchange for non-voting, non-participating preferred equity. - No investor would own 20% or more of the business, and none would have any control rights. - I would retain 80%+ ownership, full control, and take on the SBA guarantee myself. My questions: - Has anyone here successfully closed a deal like this? - Does the SBA (or lenders in practice) accept this kind of ownership/capital mismatch, as long as the ownership and guarantee rules are met? - Are there any lender preferences, red flags, or documentation issues I should be aware of when setting up the cap table or operating agreement this way? Any feedback, examples, or resources would be hugely appreciated. Thanks in advance — I know this community has seen just about every variation out there.