{"ok":true,"canonical_url":"https://dealroom.so/glossary/conditions-precedent","api_url":"https://dealroom.so/api/public/glossary/conditions-precedent","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":"conditions-precedent","term":"Conditions Precedent","group":"Doing the deal","definition":"These are specific events or actions that must occur before another action (like Closing) can take place or a contract becomes binding. They protect both buyer and seller.","what_it_means":"In a business acquisition, Conditions Precedent are vital. For example, obtaining 7(a) loan approval, completing satisfactory Due Diligence, or securing a new lease agreement are common conditions. Both parties must satisfy these before the deal can progress to Closing. They are synonymous with Closing Conditions.","url":"https://dealroom.so/glossary/conditions-precedent","official_sources":[],"related":[{"slug":"closing-conditions","term":"Closing Conditions","url":"https://dealroom.so/glossary/closing-conditions"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"closing","term":"Closing","url":"https://dealroom.so/glossary/closing"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"}],"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 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"}]},"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 — Conditions Precedent","url":"https://dealroom.so/glossary/conditions-precedent","source_type":"DealRoom Data"}}