{"ok":true,"canonical_url":"https://dealroom.so/glossary/disclosure-obligation","api_url":"https://dealroom.so/api/public/glossary/disclosure-obligation","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":"disclosure-obligation","term":"Disclosure Obligation","group":"People and paperwork","definition":"The legal duty to reveal all relevant facts and information pertinent to a transaction. Failure to disclose can lead to severe consequences for the seller, lender, and even the buyer.","what_it_means":"Both the seller and buyer have disclosure obligations throughout the 7(a) loan process. The seller must disclose all Material information about the business, including liabilities or legal issues. As a buyer, you must be transparent about your financial situation and any potential conflicts of interest. Intentional Misrepresentation or Material Omission can result in fraud allegations.","url":"https://dealroom.so/glossary/disclosure-obligation","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"},{"slug":"sba-form-1919","title":"SBA Form 1919 — Borrower Information Form","official_url":"https://www.sba.gov/document/sba-form-1919-borrower-information-form","official_label":"View on SBA.gov","authority_tier":4,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sba-form-1919"}],"related":[{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"},{"slug":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"},{"slug":"material-omission","term":"Material Omission","url":"https://dealroom.so/glossary/material-omission"},{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"}],"related_questions":[{"question":"If a seller note on full standby is repaid prematurely, what are the lender's disclosure obligations to the SBA?","url":"https://dealroom.so/for-lenders/questions/if-a-seller-note-on-full-standby-is-repaid-prematurely-what-are-the-lender-s-disclosure-ob"},{"question":"What happens to my personal guaranty obligation if I later sell the business?","url":"https://dealroom.so/sba-7a/questions/what-happens-to-my-personal-guaranty-obligation-if-i-later-sell-the-business"},{"question":"If I sell the business, does the new owner inherit the prepayment penalty obligation for the SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-sell-the-business-does-the-new-owner-inherit-the-prepayment-penalty-obligation-for-th"},{"question":"What are the lender's obligations if environmental contamination is discovered post-closing for 7(a) collateral?","url":"https://dealroom.so/for-lenders/questions/what-are-the-lender-s-obligations-if-environmental-contamination-is-discovered-post-closin"},{"question":"What if I need to use some working capital funds to pay urgent seller's outstanding obligations?","url":"https://dealroom.so/sba-7a/questions/what-if-i-need-to-use-some-working-capital-funds-to-pay-urgent-seller-s-outstanding-obliga"},{"question":"What specific reporting obligations does a lender have to the SBA after selling the guaranteed portion of a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-reporting-obligations-does-a-lender-have-to-the-sba-after-selling-the-guaran"}]},"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 — Disclosure Obligation","url":"https://dealroom.so/glossary/disclosure-obligation","source_type":"DealRoom Data"}}