{"ok":true,"canonical_url":"https://dealroom.so/glossary/unilateral-authority","api_url":"https://dealroom.so/api/public/glossary/unilateral-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":"unilateral-authority","term":"Unilateral Authority","group":"People and paperwork","definition":"This refers to the power of one individual to make decisions or take action without needing approval from others. The SBA requires this for key principals in an acquiring business.","what_it_means":"For an SBA loan, the key principal must demonstrate unilateral authority to manage the business. This ensures that no other individual or entity can impede critical business decisions or loan repayment. This can be a point of scrutiny in partnerships or complex ownership structures, requiring clear operating agreements.","url":"https://dealroom.so/glossary/unilateral-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"}],"related":[{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"}],"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 — Unilateral Authority","url":"https://dealroom.so/glossary/unilateral-authority","source_type":"DealRoom Data"}}