{"ok":true,"canonical_url":"https://dealroom.so/glossary/conflict-of-interest","api_url":"https://dealroom.so/api/public/glossary/conflict-of-interest","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":"conflict-of-interest","term":"Conflict of interest","group":"People and paperwork","definition":"This arises when a person's private interests could improperly influence their official duties or decisions. In a deal, it can affect fairness and transparency.","what_it_means":"Lenders and the SBA scrutinize relationships between the buyer, seller, and any involved parties to ensure arm's length transactions. Undisclosed conflicts, such as a seller's family member being your business broker, can jeopardize loan approval. Full transparency is key.","url":"https://dealroom.so/glossary/conflict-of-interest","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"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":"arm-s-length","term":"Arm's length","url":"https://dealroom.so/glossary/arm-s-length"},{"slug":"business-broker","term":"Business broker","url":"https://dealroom.so/glossary/business-broker"},{"slug":"ma-advisor","term":"M&A advisor","url":"https://dealroom.so/glossary/ma-advisor"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"}],"related_questions":[{"question":"What types of interest rates are typically available for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/what-types-of-interest-rates-are-typically-available-for-sba-7-a-loans"},{"question":"When does identity of interest trigger affiliation for size determination under SBA rules?","url":"https://dealroom.so/for-lenders/questions/when-does-identity-of-interest-trigger-affiliation-for-size-determination-under-sba-rules"},{"question":"How do potential conflicts of interest with the seller, like shared services, affect approval?","url":"https://dealroom.so/sba-7a/questions/how-do-potential-conflicts-of-interest-with-the-seller-like-shared-services-affect-approva"},{"question":"What is the typical range of interest rates for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-range-of-interest-rates-for-an-sba-7-a-loan"},{"question":"What kind of interest rate options are available for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-interest-rate-options-are-available-for-an-sba-7-a-loan"},{"question":"What kind of interest rate can I expect on an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-kind-of-interest-rate-can-i-expect-on-an-sba-7-a-loan"}]},"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 — Conflict of interest","url":"https://dealroom.so/glossary/conflict-of-interest","source_type":"DealRoom Data"}}