{"ok":true,"canonical_url":"https://dealroom.so/glossary/civil-lawsuit","api_url":"https://dealroom.so/api/public/glossary/civil-lawsuit","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":"civil-lawsuit","term":"Civil Lawsuit","group":"People and paperwork","definition":"A civil lawsuit is a legal dispute between two or more parties seeking monetary damages or specific performance, not criminal penalties. Buyers must identify any ongoing or past lawsuits related to the business or seller during due diligence.","what_it_means":"During due diligence, review any current or past civil lawsuits involving the business or its principals. Significant litigation can indicate underlying operational issues, reputational damage, or potential future liabilities. The lender will also review these as part of their underwriting process, especially if it impacts the business's financial health or your personal eligibility.","url":"https://dealroom.so/glossary/civil-lawsuit","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"}],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"}],"related_questions":[{"question":"Does a pending civil lawsuit against me personally affect SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/does-a-pending-civil-lawsuit-against-me-personally-affect-sba-7-a-loan-approval"},{"question":"Will a past civil lawsuit settlement (not bankruptcy) affect my SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-7a/questions/will-a-past-civil-lawsuit-settlement-not-bankruptcy-affect-my-sba-7-a-loan-eligibility"},{"question":"Does a past civil lawsuit or judgment, not criminal, affect my eligibility for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/does-a-past-civil-lawsuit-or-judgment-not-criminal-affect-my-eligibility-for-an-sba-7-a-lo"},{"question":"Will an outstanding personal judgment (e.g., from a civil lawsuit) prevent me from getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/will-an-outstanding-personal-judgment-e-g-from-a-civil-lawsuit-prevent-me-from-getting-an-"},{"question":"If I have prior civil lawsuits or judgments, distinct from tax liens or bankruptcy, will that affect my SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-have-prior-civil-lawsuits-or-judgments-distinct-from-tax-liens-or-bankruptcy-will-tha"},{"question":"How do past civil litigation or judgments impact my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/how-do-past-civil-litigation-or-judgments-impact-my-sba-7-a-loan-approval"}]},"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 — Civil Lawsuit","url":"https://dealroom.so/glossary/civil-lawsuit","source_type":"DealRoom Data"}}