{"ok":true,"canonical_url":"https://dealroom.so/glossary/condition-precedent-to-funding","api_url":"https://dealroom.so/api/public/glossary/condition-precedent-to-funding","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":"condition-precedent-to-funding","term":"Condition precedent to funding","group":"Doing the deal","definition":"A condition precedent is a requirement that must be met before your loan funds can be released. Failing to satisfy these conditions can delay or even kill your deal.","what_it_means":"Your SBA Loan Authorization and loan agreement will list various conditions precedent, such as providing proof of insurance, signing a lease, or forming your new business entity. You need to track these and ensure they are all fulfilled by closing. Work with your lender and legal counsel to tick off every item well before the scheduled funding date.","url":"https://dealroom.so/glossary/condition-precedent-to-funding","official_sources":[],"related":[{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"}],"related_questions":[{"question":"What if a loan authorization requires a specific condition precedent to closing that is not met?","url":"https://dealroom.so/for-lenders/questions/what-if-a-loan-authorization-requires-a-specific-condition-precedent-to-closing-that-is-no"},{"question":"What if a Phase I ESA identifies a Recognized Environmental Condition (REC) but deems it a 'de minimis' condition?","url":"https://dealroom.so/for-lenders/questions/what-if-a-phase-i-esa-identifies-a-recognized-environmental-condition-rec-but-deems-it-a-d"},{"question":"What is the typical timeframe from application to funding for a 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-timeframe-from-application-to-funding-for-a-7-a-loan"},{"question":"What is the typical timeframe from submitting a complete application to receiving initial funding?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-timeframe-from-submitting-a-complete-application-to-receiving-initial-"},{"question":"What is the typical timeframe from application to funding for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-timeframe-from-application-to-funding-for-an-sba-7-a-loan"},{"question":"What is the average time it takes to get an SBA 7(a) loan from application to funding?","url":"https://dealroom.so/sba-loans/basics/what-is-the-average-time-it-takes-to-get-an-sba-7-a-loan-from-application-to-funding"}]},"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 — Condition precedent to funding","url":"https://dealroom.so/glossary/condition-precedent-to-funding","source_type":"DealRoom Data"}}