Glossary · People and paperwork
Management agreement
In short
This is a contract outlining the terms and conditions under which a third party manages a business or property. It defines roles, responsibilities, and compensation.
What it means in a deal
In some SBA 7(a) deals, particularly with semi-absentee ownership or specific industry needs, a management agreement might be part of the structure. Ensure the agreement clearly defines the manager's authority and compensation, and that it doesn't violate any SBA affiliation rules. The SBA typically requires owner-operators.
Related terms
Common questions about Management agreement
- What if a proposed franchise agreement includes a clause restricting the borrower's operational control or management?
- How does the SBA verify my business management experience?
- Is previous business ownership or management experience required to qualify?
- How does common management trigger affiliation for size standard purposes?
- How does the SBA define "management experience" for a business acquisition?
- How does common management trigger affiliation for SBA size standard purposes?
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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