Glossary · Doing the deal
Change of control
In short
This refers to when ownership of a business shifts, like when you buy a company. For an SBA loan, it's the core event that triggers the need for new financing and eligibility review.
What it means in a deal
In an SBA 7(a) acquisition, a change of control is fundamental. The SBA lender will underwrite the loan based on the new ownership's eligibility and ability to repay. This involves reviewing your personal finances, experience, and the business's historical performance under your projected management.
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 Change of control
- What is the definition of "control" for affiliation purposes in a 7(a) loan application?
- How does the "control" principle trigger affiliation for purposes of determining a business's size standard?
- What issues in a franchise agreement typically lead to a determination of 'undue control' by the franchisor?
- How does the 'control' principle specifically trigger affiliation for purposes of determining a business's size standard?
- How does a lender verify the source and control of borrower's equity injection funds from a newly established business bank account?
- What specific types of clauses in a franchise agreement would constitute "undue control" by the franchisor, rendering it ineligible for 7(a) financing?
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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