{"ok":true,"canonical_url":"https://dealroom.so/glossary/executive-authority","api_url":"https://dealroom.so/api/public/glossary/executive-authority","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":"executive-authority","term":"Executive Authority","group":"People and paperwork","definition":"The ultimate power to lead and direct a company's overall operations and strategic vision. This authority typically rests with the highest-level officers or owners.","what_it_means":"As the buyer using an SBA loan, you must clearly assume executive authority over the acquired business. This means you are responsible for setting the company's direction and overseeing its performance. Ensure the legal documents transfer this authority unequivocally to you.","url":"https://dealroom.so/glossary/executive-authority","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":"managerial-control","term":"Managerial Control","url":"https://dealroom.so/glossary/managerial-control"},{"slug":"management-authority","term":"Management Authority","url":"https://dealroom.so/glossary/management-authority"},{"slug":"retained-control","term":"Retained Control","url":"https://dealroom.so/glossary/retained-control"},{"slug":"chief-operating-officer","term":"Chief Operating Officer","url":"https://dealroom.so/glossary/chief-operating-officer"}],"related_questions":[{"question":"What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?","url":"https://dealroom.so/sba-7a/questions/what-factors-allow-a-lender-to-use-their-delegated-authority-e-g-preferred-lender-status-t"}]},"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 — Executive Authority","url":"https://dealroom.so/glossary/executive-authority","source_type":"DealRoom Data"}}