{"ok":true,"canonical_url":"https://dealroom.so/glossary/business-license","api_url":"https://dealroom.so/api/public/glossary/business-license","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":"business-license","term":"Business license","group":"People and paperwork","definition":"A permit issued by a government agency that allows a business to operate legally within a specific jurisdiction. It's mandatory for most businesses.","what_it_means":"Before closing, ensure the target business has all necessary and current licenses. As the buyer, you'll need to apply for new licenses or transfer existing ones in your name. Verify with local and state authorities to avoid operational delays post-acquisition.","url":"https://dealroom.so/glossary/business-license","official_sources":[],"related":[{"slug":"compliance","term":"Compliance","url":"https://dealroom.so/glossary/compliance"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"}],"related_questions":[{"question":"How does the SBA determine affiliation for businesses operating under a license agreement?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-affiliation-for-businesses-operating-under-a-license-agreement"},{"question":"Can a professional license or intellectual property I developed be valued and count towards the 10% equity?","url":"https://dealroom.so/sba-7a/questions/can-a-professional-license-or-intellectual-property-i-developed-be-valued-and-count-toward"},{"question":"What if my business operates in a highly regulated industry, like childcare or medical services, requiring specific licenses?","url":"https://dealroom.so/sba-7a/questions/what-if-my-business-operates-in-a-highly-regulated-industry-like-childcare-or-medical-serv"},{"question":"How does the \"franchise rule\" specifically apply to determine affiliation for an independent dealer or licensee model?","url":"https://dealroom.so/for-lenders/questions/how-does-the-franchise-rule-specifically-apply-to-determine-affiliation-for-an-independent"},{"question":"Are specific certifications or licenses required for my industry for SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/are-specific-certifications-or-licenses-required-for-my-industry-for-sba-7-a-loan-approval"},{"question":"Are there specific certifications or licenses required for my industry for SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-certifications-or-licenses-required-for-my-industry-for-sba-7-a-loan-ap"}]},"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 — Business license","url":"https://dealroom.so/glossary/business-license","source_type":"DealRoom Data"}}