Glossary · Doing the deal
Blocking right
In short
A blocking right is the power of a minority owner to prevent certain actions, even if they own less than 20% of the business. The SBA considers someone with a blocking right a key principal for personal guarantee purposes.
What it means in a deal
If your operating agreement gives a non-owner or minority owner the ability to veto critical business decisions, that person may be subject to a personal guarantee under the control principle. Review your business's governing documents carefully to identify any such rights.
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 Blocking right
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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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