{"ok":true,"canonical_url":"https://dealroom.so/glossary/subsidiary","api_url":"https://dealroom.so/api/public/glossary/subsidiary","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":"subsidiary","term":"Subsidiary","group":"People and paperwork","definition":"A company controlled by another company, often called the parent company. When buying a business, understand if it's a subsidiary and how that affects its operations or liabilities.","what_it_means":"If the business you're buying is a subsidiary, its operations, financials, and legal structure might be intertwined with the parent company. Ensure you understand what assets and liabilities you are truly acquiring and if any shared services agreements need to be severed or renegotiated.","url":"https://dealroom.so/glossary/subsidiary","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"}],"related":[{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"}],"related_questions":[{"question":"Can a non-profit organization with a for-profit subsidiary be eligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/can-a-non-profit-organization-with-a-for-profit-subsidiary-be-eligible-for-a-7-a-loan"}]},"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 — Subsidiary","url":"https://dealroom.so/glossary/subsidiary","source_type":"DealRoom Data"}}