{"ok":true,"canonical_url":"https://dealroom.so/glossary/control","api_url":"https://dealroom.so/api/public/glossary/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":"control","term":"Control","group":"Reading the business","definition":"The SBA defines control as the power to direct the management and policies of a business. This is crucial for determining affiliation and eligibility for an SBA loan.","what_it_means":"Control can be positive (owning more than 50% of voting equity) or negative (blocking actions of others, even with a minority stake). The SBA looks beyond formal ownership to actual influence. If you or the seller control other businesses, those are likely affiliated for size standard purposes.","url":"https://dealroom.so/glossary/control","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":"affiliated-group","term":"Affiliated group","url":"https://dealroom.so/glossary/affiliated-group"},{"slug":"negative-control","term":"Negative control","url":"https://dealroom.so/glossary/negative-control"},{"slug":"size-standard","term":"Size standard","url":"https://dealroom.so/glossary/size-standard"}],"related_questions":[{"question":"How does the SBA define 'total control' rule to determine affiliation for size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-define-total-control-rule-to-determine-affiliation-for-size-standards"},{"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 SBA determine \"common control\" when assessing affiliation for a management company providing services?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-common-control-when-assessing-affiliation-for-a-management-comp"},{"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":"How does the SBA evaluate a franchise agreement not on the directory for acceptable franchisor control provisions?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-a-franchise-agreement-not-on-the-directory-for-acceptable-franch"},{"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"}]},"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 — Control","url":"https://dealroom.so/glossary/control","source_type":"DealRoom Data"}}