Glossary · People and paperwork
In short
This is any individual or entity with significant influence over the business, typically owning 20% or more, or having key management responsibilities. All Controlling Parties must provide personal guarantees.
The SBA defines a Controlling Party as anyone owning 20% or more of the business, or holding certain positions like CEO, President, or managing member. All Controlling Parties must personally guarantee the SBA loan. This ensures they are fully committed and accountable, so be prepared for these guarantees.
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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