{"ok":true,"canonical_url":"https://dealroom.so/glossary/control-agreement","api_url":"https://dealroom.so/api/public/glossary/control-agreement","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-agreement","term":"Control Agreement","group":"Doing the deal","definition":"A legal agreement granting a secured party, usually a lender, control over a borrower's deposit accounts or investment property. It perfects the lender's security interest in these assets.","what_it_means":"If the business has significant cash balances in bank accounts or marketable securities that are pledged as collateral, your SBA lender may require a Control Agreement. This ensures the lender has priority access to those funds in case of default. Understand that this gives the lender significant power over those specific assets.","url":"https://dealroom.so/glossary/control-agreement","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"}],"related":[{"slug":"security-interest","term":"Security Interest","url":"https://dealroom.so/glossary/security-interest"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"perfect-lien","term":"Perfect lien","url":"https://dealroom.so/glossary/perfect-lien"},{"slug":"marketable-securities","term":"Marketable securities","url":"https://dealroom.so/glossary/marketable-securities"}],"related_questions":[{"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"},{"question":"What if a proposed franchise agreement includes a clause restricting the borrower's operational control or management?","url":"https://dealroom.so/for-lenders/questions/what-if-a-proposed-franchise-agreement-includes-a-clause-restricting-the-borrower-s-operat"},{"question":"How does a lender determine if a franchise agreement contains impermissible control provisions not listed on the Directory?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-if-a-franchise-agreement-contains-impermissible-control-provis"},{"question":"How does the SBA determine 'undue control' by a franchisor in a franchise agreement, making it ineligible for 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-undue-control-by-a-franchisor-in-a-franchise-agreement-making-i"},{"question":"How does the SBA determine if a franchise agreement grants the franchisor 'undue control' over the franchisee, impacting 7(a) eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-if-a-franchise-agreement-grants-the-franchisor-undue-control-ov"}]},"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 Agreement","url":"https://dealroom.so/glossary/control-agreement","source_type":"DealRoom Data"}}