Glossary · People and paperwork
In short
When a seller or other party maintains significant influence or decision-making power over a business after its sale. The SBA strictly limits this for 7(a) loan borrowers.
For an SBA loan, the buyer must gain full managerial control. The seller cannot retain decision-making authority that undermines your ability to operate the business. If a seller consulting agreement is in place, it must be purely advisory, ensuring you, the buyer, hold the ultimate authority.
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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