{"ok":true,"canonical_url":"https://dealroom.so/glossary/controlling-interest","api_url":"https://dealroom.so/api/public/glossary/controlling-interest","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":"controlling-interest","term":"Controlling interest","aka":"Majority ownership","group":"Reading the business","definition":"Ownership of enough shares or voting power to dictate a company's policies and management. For an SBA loan, the buyer typically needs to acquire at least 51% of the business to demonstrate control.","what_it_means":"You must acquire a controlling interest in the business to be eligible for an SBA 7(a) loan. This usually means at least 51% ownership. The SBA defines control broadly, including direct or indirect power to direct management or policies. All owners with a 20% or more stake are generally considered key principals and must personally guarantee the loan.","url":"https://dealroom.so/glossary/controlling-interest","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":"de-facto-control","term":"De facto control","url":"https://dealroom.so/glossary/de-facto-control"},{"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 specific conditions for a seller to retain a passive, non-controlling minority stake in an SBA 7(a) acquisition?","url":"https://dealroom.so/sba-7a/questions/what-are-the-specific-conditions-for-a-seller-to-retain-a-passive-non-controlling-minority"},{"question":"What happens to the interest rate on an SBA 7(a) loan if general market interest rates go down significantly?","url":"https://dealroom.so/sba-loans/basics/what-happens-to-the-interest-rate-on-an-sba-7-a-loan-if-general-market-interest-rates-go-d"},{"question":"Can a full standby seller note be interest-bearing if interest is deferred until after the SBA loan is repaid?","url":"https://dealroom.so/for-lenders/questions/can-a-full-standby-seller-note-be-interest-bearing-if-interest-is-deferred-until-after-the"},{"question":"What is the difference between a fixed interest rate and a variable interest rate on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-between-a-fixed-interest-rate-and-a-variable-interest-rate-on-an-sb"},{"question":"How are SBA 7(a) loan interest rates determined?","url":"https://dealroom.so/sba-loans/basics/how-are-sba-7-a-loan-interest-rates-determined"},{"question":"What defines 'insurable interest' for a business life insurance policy?","url":"https://dealroom.so/sba-7a/questions/what-defines-insurable-interest-for-a-business-life-insurance-policy"}]},"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 — Controlling interest","url":"https://dealroom.so/glossary/controlling-interest","source_type":"DealRoom Data"}}