{"ok":true,"canonical_url":"https://dealroom.so/glossary/blocking-right","api_url":"https://dealroom.so/api/public/glossary/blocking-right","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"blocking-right","term":"Blocking right","group":"Doing the deal","definition":"A blocking right is the power of a minority owner to prevent certain actions, even if they own less than 20% of the business. The SBA considers someone with a blocking right a key principal for personal guarantee purposes.","what_it_means":"If your operating agreement gives a non-owner or minority owner the ability to veto critical business decisions, that person may be subject to a personal guarantee under the control principle. Review your business's governing documents carefully to identify any such rights.","url":"https://dealroom.so/glossary/blocking-right","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"control-principle","term":"Control principle","url":"https://dealroom.so/glossary/control-principle"},{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"}],"related_questions":[{"question":"What are the typical interest rates for an SBA 7(a) loan right now?","url":"https://dealroom.so/sba-loans/basics/what-are-the-typical-interest-rates-for-an-sba-7-a-loan-right-now"},{"question":"If I inherit funds right before closing, can they count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/if-i-inherit-funds-right-before-closing-can-they-count-towards-my-equity-injection"},{"question":"If I inherit $75,000 right before closing, can these funds count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/if-i-inherit-75-000-right-before-closing-can-these-funds-count-towards-my-equity-injection"},{"question":"What if I received a large inheritance right before applying; can those funds be used for the down payment?","url":"https://dealroom.so/sba-7a/questions/what-if-i-received-a-large-inheritance-right-before-applying-can-those-funds-be-used-for-t"},{"question":"Can an SBA 7(a) loan finance the purchase of intellectual property rights from a third party?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-purchase-of-intellectual-property-rights-from-a-third-part"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Blocking right","url":"https://dealroom.so/glossary/blocking-right","source_type":"DealRoom Data"}}