Glossary · The loan itself
In short
This SBA rule requires that a borrower, typically the small business owner, must have complete control over the business receiving the loan proceeds. It prevents loans from going to businesses where control is diluted or held by ineligible parties.
For your SBA 7(a) loan, you as the buyer must demonstrate total control of the acquired business. This means you need to hold at least 51% equity or have equivalent operational control, especially if there are other investors or a retained seller interest. The SBA wants to know who is truly running the show.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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