Glossary · Reading the business
Control
In short
The SBA defines control as the power to direct the management and policies of a business. This is crucial for determining affiliation and eligibility for an SBA loan.
What it means in a deal
Control can be positive (owning more than 50% of voting equity) or negative (blocking actions of others, even with a minority stake). The SBA looks beyond formal ownership to actual influence. If you or the seller control other businesses, those are likely affiliated for size standard purposes.
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 Control
- 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?
- What issues in a franchise agreement typically lead to a determination of 'undue control' by the franchisor?
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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