Glossary · Reading the business
In short
Ownership of enough shares or voting power to dictate a company's policies and management. For an SBA loan, the buyer typically needs to acquire at least 51% of the business to demonstrate control.
You must acquire a controlling interest in the business to be eligible for an SBA 7(a) loan. This usually means at least 51% ownership. The SBA defines control broadly, including direct or indirect power to direct management or policies. All owners with a 20% or more stake are generally considered key principals and must personally guarantee the loan.
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
Free · No documents · Usually same-day