{"ok":true,"canonical_url":"https://dealroom.so/glossary/retained-control","api_url":"https://dealroom.so/api/public/glossary/retained-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":"retained-control","term":"Retained Control","group":"People and paperwork","definition":"When a seller or other party maintains significant influence or decision-making power over a business after its sale. The SBA strictly limits this for 7(a) loan borrowers.","what_it_means":"For an SBA loan, the buyer must gain full managerial control. The seller cannot retain decision-making authority that undermines your ability to operate the business. If a seller consulting agreement is in place, it must be purely advisory, ensuring you, the buyer, hold the ultimate authority.","url":"https://dealroom.so/glossary/retained-control","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":"management-authority","term":"Management Authority","url":"https://dealroom.so/glossary/management-authority"},{"slug":"seller-consulting-agreement","term":"Seller Consulting Agreement","url":"https://dealroom.so/glossary/seller-consulting-agreement"}],"related_questions":[{"question":"What specific limitations must a lender impose on a seller's post-closing consulting agreement to ensure it does not imply retained control or undue influence?","url":"https://dealroom.so/for-lenders/questions/what-specific-limitations-must-a-lender-impose-on-a-seller-s-post-closing-consulting-agree"},{"question":"Can a business's retained earnings count as equity injection?","url":"https://dealroom.so/sba-loans/basics/can-a-business-s-retained-earnings-count-as-equity-injection"},{"question":"How does the SBA view a seller's retained ownership after an acquisition?","url":"https://dealroom.so/sba-loans/basics/how-does-the-sba-view-a-seller-s-retained-ownership-after-an-acquisition"},{"question":"Can I use my business's retained earnings from a prior venture as equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-my-business-s-retained-earnings-from-a-prior-venture-as-equity-injection"},{"question":"How does the SBA handle a seller's retained ownership in a change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-handle-a-seller-s-retained-ownership-in-a-change-of-ownership-transaction"},{"question":"How does the SBA handle a seller's retained ownership in a 7(a) change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-handle-a-seller-s-retained-ownership-in-a-7-a-change-of-ownership-transac"}]},"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 — Retained Control","url":"https://dealroom.so/glossary/retained-control","source_type":"DealRoom Data"}}