{"ok":true,"canonical_url":"https://dealroom.so/glossary/management-authority","api_url":"https://dealroom.so/api/public/glossary/management-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":"management-authority","term":"Management Authority","group":"People and paperwork","definition":"The power to make decisions regarding the operation and strategic direction of a business. The SBA requires that the buyer obtains full management authority.","what_it_means":"When acquiring a business with an SBA loan, you must demonstrate that you will have complete management authority. This means being able to hire, fire, set policies, and make all key operational decisions. Any agreements with the seller must not infringe upon your ultimate authority.","url":"https://dealroom.so/glossary/management-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":"executive-authority","term":"Executive Authority","url":"https://dealroom.so/glossary/executive-authority"},{"slug":"retained-control","term":"Retained Control","url":"https://dealroom.so/glossary/retained-control"},{"slug":"seller-consulting-agreement","term":"Seller Consulting Agreement","url":"https://dealroom.so/glossary/seller-consulting-agreement"}],"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"},{"question":"How does the SBA verify my business management experience?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-verify-my-business-management-experience"},{"question":"Is previous business ownership or management experience required to qualify?","url":"https://dealroom.so/sba-loans/basics/is-previous-business-ownership-or-management-experience-required-to-qualify"},{"question":"How does common management trigger affiliation for size standard purposes?","url":"https://dealroom.so/for-lenders/questions/how-does-common-management-trigger-affiliation-for-size-standard-purposes"},{"question":"How does the SBA define \"management experience\" for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-define-management-experience-for-a-business-acquisition"},{"question":"How does common management trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-common-management-trigger-affiliation-for-sba-size-standard-purposes"}]},"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 — Management Authority","url":"https://dealroom.so/glossary/management-authority","source_type":"DealRoom Data"}}