Controlling interest

Definition

Enough of the ownership to decide things without anyone's agreement.

Why It Matters

Percentages and control are two different questions and a deal can hand you one without the other. The operating agreement decides what actually needs a vote, so a majority holder can still be blocked on selling, borrowing or hiring if those are reserved matters, and a minority holder with the right consent rights can stop a company cold. The number matters separately for the loan: anyone at or above a fifth of the equity signs the guarantee, so a small stake given to a partner is a signature you are asking them for. Read the agreement before the cap table.

In numbers: Two partners at 50% each control nothing alone, while one at 51% decides everything, and the SBA treats anyone above 20% as an owner who guarantees the loan.