Glossary · Reading the business
De facto control(Actual control)
In short
Exercising actual, practical control over a business despite not holding a majority ownership stake. Buyers should be aware of this dynamic, as it can influence decision-making and business operations.
What it means in a deal
De facto control can arise through contractual agreements, family relationships, or significant influence over management, even if an individual owns less than 50%. The SBA scrutinizes control to determine eligibility and identify all key principals who must personally guarantee the loan.
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 De facto control
- What if a Phase I ESA identifies a Recognized Environmental Condition (REC) but deems it a 'de minimis' condition?
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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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