Glossary · People and paperwork
Unilateral Authority
In short
This refers to the power of one individual to make decisions or take action without needing approval from others. The SBA requires this for key principals in an acquiring business.
What it means in a deal
For an SBA loan, the key principal must demonstrate unilateral authority to manage the business. This ensures that no other individual or entity can impede critical business decisions or loan repayment. This can be a point of scrutiny in partnerships or complex ownership structures, requiring clear operating agreements.
Official sources
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 Unilateral Authority
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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