Identify the trigger
Check whether the deadlock mechanism applies only to exceptional disputes or can be invoked for routine decisions.
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WOSB control
WOSB Deadlock Clauses: Control Questions to Review Before Submission
Deadlock clauses are designed to resolve disputes, but some provisions can shift meaningful decision power away from the qualifying woman owner.
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Identify the tie-breaker
A third-party tie-breaker, rotating manager, or other mechanism may change who has final decision authority.
Review forced-sale mechanics
Buy-sell and shotgun provisions can affect ownership and should be read with transfer and control terms.
Compare with voting rights
Deadlock language should be assessed together with voting thresholds, veto rights, and manager powers.
Pre-submission checks to consider
Turn this topic into concrete review checks
- Deadlock triggers and scope
- Tie-breaker or third-party decision rights
- Forced-sale or buy-sell consequences
- Interaction with voting and manager authority
Official sources
WOSB requirements are governed by SBA rules and current application instructions. Always follow the latest official guidance for your facts and business structure.
Related WOSB guidance
Keep reviewing your application package
FAQ
Common questions
Does every deadlock clause create a WOSB issue?
No. The specific mechanism and the decisions it covers matter.
Why review a clause that has never been used?
The governing documents establish legal rights even if a clause has never been invoked.
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