Glossary · Reading the business
In short
The SBA defines control as the power to direct the management and policies of a business. This is crucial for determining affiliation and eligibility for an SBA loan.
Control can be positive (owning more than 50% of voting equity) or negative (blocking actions of others, even with a minority stake). The SBA looks beyond formal ownership to actual influence. If you or the seller control other businesses, those are likely affiliated for size standard purposes.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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