Glossary · People and paperwork
In short
The ability to direct the day-to-day management and decision-making of a business. The SBA requires the buyer to have this, ensuring they are truly running the acquired business.
The buyer must demonstrate they have the experience and intention to actively manage the business. Loan documents will reflect the buyer's full authority. Be wary of seller agreements that limit your operational control post-closing, as this can be an SBA eligibility issue.
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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