Glossary · People and paperwork
Management Authority
In short
The power to make decisions regarding the operation and strategic direction of a business. The SBA requires that the buyer obtains full management authority.
What it means in a deal
When acquiring a business with an SBA loan, you must demonstrate that you will have complete management authority. This means being able to hire, fire, set policies, and make all key operational decisions. Any agreements with the seller must not infringe upon your ultimate authority.
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 Management Authority
- What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?
- 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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