Glossary · People and paperwork
Board control
In short
Board control means having enough votes on a company's board of directors to direct its strategy and make key decisions. This typically comes from owning a majority of voting shares.
What it means in a deal
As a buyer acquiring a business, you typically seek 100% board control, especially with an SBA 7(a) loan where you're expected to be actively involved as a key principal. Ensure the purchase agreement grants you full control post-closing.
Related terms
Common questions about Board control
- Is member or board consent needed for an SBA partner buyout?
- How does the SBA define 'total control' rule to determine affiliation for size standards?
- What is the definition of "control" for affiliation purposes in a 7(a) loan application?
- How does the SBA determine "common control" when assessing affiliation for a management company providing services?
- How does the "control" principle trigger affiliation for purposes of determining a business's size standard?
- How does the SBA evaluate a franchise agreement not on the directory for acceptable franchisor control provisions?
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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