{"ok":true,"canonical_url":"https://dealroom.so/glossary/change-of-control","api_url":"https://dealroom.so/api/public/glossary/change-of-control","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":"change-of-control","term":"Change of control","group":"Doing the deal","definition":"This refers to when ownership of a business shifts, like when you buy a company. For an SBA loan, it's the core event that triggers the need for new financing and eligibility review.","what_it_means":"In an SBA 7(a) acquisition, a change of control is fundamental. The SBA lender will underwrite the loan based on the new ownership's eligibility and ability to repay. This involves reviewing your personal finances, experience, and the business's historical performance under your projected management.","url":"https://dealroom.so/glossary/change-of-control","official_sources":[{"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"},{"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"}],"related":[{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"}],"related_questions":[{"question":"What is the definition of \"control\" for affiliation purposes in a 7(a) loan application?","url":"https://dealroom.so/for-lenders/questions/what-is-the-definition-of-control-for-affiliation-purposes-in-a-7-a-loan-application"},{"question":"How does the \"control\" principle trigger affiliation for purposes of determining a business's size standard?","url":"https://dealroom.so/for-lenders/questions/how-does-the-control-principle-trigger-affiliation-for-purposes-of-determining-a-business-"},{"question":"What issues in a franchise agreement typically lead to a determination of 'undue control' by the franchisor?","url":"https://dealroom.so/for-lenders/questions/what-issues-in-a-franchise-agreement-typically-lead-to-a-determination-of-undue-control-by"},{"question":"How does the 'control' principle specifically trigger affiliation for purposes of determining a business's size standard?","url":"https://dealroom.so/for-lenders/questions/how-does-the-control-principle-specifically-trigger-affiliation-for-purposes-of-determinin"},{"question":"How does a lender verify the source and control of borrower's equity injection funds from a newly established business bank account?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-source-and-control-of-borrower-s-equity-injection-funds-from-"},{"question":"What specific types of clauses in a franchise agreement would constitute \"undue control\" by the franchisor, rendering it ineligible for 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/what-specific-types-of-clauses-in-a-franchise-agreement-would-constitute-undue-control-by-"}]},"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 — Change of control","url":"https://dealroom.so/glossary/change-of-control","source_type":"DealRoom Data"}}