{"ok":true,"canonical_url":"https://dealroom.so/glossary/majority-control","api_url":"https://dealroom.so/api/public/glossary/majority-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":"majority-control","term":"Majority control","group":"Reading the business","definition":"When an individual or group owns more than 50% of a business, they have majority control. For a buyer getting an SBA loan, this means they'll be the primary decision-maker and responsible party.","what_it_means":"The SBA requires the buyer to acquire majority control of the business being purchased with a 7(a) loan. This ensures the buyer has full operational authority and accountability. Lenders will verify this through the purchase agreement and ownership structure documentation.","url":"https://dealroom.so/glossary/majority-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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"partner-buyout","term":"Partner buyout","url":"https://dealroom.so/glossary/partner-buyout"}],"related_questions":[{"question":"Can I use an SBA 7(a) loan to purchase a majority but not 100% of a business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-purchase-a-majority-but-not-100-of-a-business"},{"question":"Can an SBA 7(a) loan be used to purchase a majority stake in a business, not 100%?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-majority-stake-in-a-business-not-100"},{"question":"Can an SBA 7(a) loan be used to purchase a majority but not 100% of a business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-majority-but-not-100-of-a-business"},{"question":"Can I use an SBA 7(a) loan to buy out a business partner who holds a majority stake?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-buy-out-a-business-partner-who-holds-a-majority-stake"},{"question":"Can an SBA 7(a) loan be used to purchase a majority stake, but not 100%, of a business?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-majority-stake-but-not-100-of-a-business"},{"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"}]},"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 — Majority control","url":"https://dealroom.so/glossary/majority-control","source_type":"DealRoom Data"}}