{"ok":true,"canonical_url":"https://dealroom.so/glossary/closing-conditions","api_url":"https://dealroom.so/api/public/glossary/closing-conditions","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":"closing-conditions","term":"Closing Conditions","group":"Doing the deal","definition":"These are specific requirements that must be satisfied by both buyer and seller before the acquisition can be finalized. They ensure all parties meet their obligations and protect against unforeseen issues.","what_it_means":"Your Letter of Intent (LOI) and purchase agreement will outline critical Closing Conditions, such as completing due diligence, obtaining all necessary third-party consents (e.g., landlord, franchise), and securing the 7(a) loan approval. If any condition isn't met, either party can typically terminate the deal without penalty. They are essentially Conditions Precedent.","url":"https://dealroom.so/glossary/closing-conditions","official_sources":[],"related":[{"slug":"conditions-precedent","term":"Conditions Precedent","url":"https://dealroom.so/glossary/conditions-precedent"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"closing","term":"Closing","url":"https://dealroom.so/glossary/closing"}],"related_questions":[{"question":"What are the specific conditions for an acceptable full standby agreement?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-conditions-for-an-acceptable-full-standby-agreement"},{"question":"What specific conditions trigger affiliation due to contractual relationships or franchise agreements?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-trigger-affiliation-due-to-contractual-relationships-or-franchise"},{"question":"What is required if the $0-down partner buyout conditions are not met?","url":"https://dealroom.so/sba-7a/questions/what-is-required-if-the-0-down-partner-buyout-conditions-are-not-met"},{"question":"Under what conditions can a seller note on full standby be repaid early?","url":"https://dealroom.so/sba-7a/questions/under-what-conditions-can-a-seller-note-on-full-standby-be-repaid-early"},{"question":"Under what specific conditions does the SBA impose a prepayment penalty on 7(a) loans?","url":"https://dealroom.so/sba-7a/questions/under-what-specific-conditions-does-the-sba-impose-a-prepayment-penalty-on-7-a-loans"},{"question":"What specific conditions trigger the requirement for a corporate guaranty in addition to personal guarantees?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-trigger-the-requirement-for-a-corporate-guaranty-in-addition-to-p"}]},"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 — Closing Conditions","url":"https://dealroom.so/glossary/closing-conditions","source_type":"DealRoom Data"}}