{"ok":true,"canonical_url":"https://dealroom.so/glossary/acquiring-entity","api_url":"https://dealroom.so/api/public/glossary/acquiring-entity","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"acquiring-entity","term":"Acquiring entity","group":"Doing the deal","definition":"This is the legal structure (LLC, Corporation) you set up to purchase and own the business. It’s critical because it dictates liability and tax treatment.","what_it_means":"Your acquiring entity will be the borrower on the SBA 7(a) loan. The SBA requires all owners of 20% or more of this entity to provide a Personal Guarantee. Carefully choose your entity type early with legal and tax advisors to avoid issues during closing.","url":"https://dealroom.so/glossary/acquiring-entity","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"}],"related_questions":[{"question":"What if the business I'm acquiring leases its property from an entity owned by the seller?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-leases-its-property-from-an-entity-owned-by-the-seller"},{"question":"Are there specific requirements for the legal entity structure of the acquiring business for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-requirements-for-the-legal-entity-structure-of-the-acquiring-business-f"},{"question":"What if the business I'm acquiring leases its property from an entity I also own, not the seller?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-acquiring-leases-its-property-from-an-entity-i-also-own-not-the-s"},{"question":"If the business I'm acquiring leases its property from an entity I also own, not the seller, how does this impact my 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/if-the-business-i-m-acquiring-leases-its-property-from-an-entity-i-also-own-not-the-seller"},{"question":"What if the business I'm acquiring has *negative goodwill*?","url":"https://dealroom.so/sba-loans/basics/what-if-the-business-i-m-acquiring-has-negative-goodwill"},{"question":"What are the key distinctions between cross-purchase and entity-purchase buy-sell agreements?","url":"https://dealroom.so/sba-7a/questions/what-are-the-key-distinctions-between-cross-purchase-and-entity-purchase-buy-sell-agreemen"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Acquiring entity","url":"https://dealroom.so/glossary/acquiring-entity","source_type":"DealRoom Data"}}