{"ok":true,"canonical_url":"https://dealroom.so/glossary/escrow-account","api_url":"https://dealroom.so/api/public/glossary/escrow-account","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":"escrow-account","term":"Escrow account","group":"Doing the deal","definition":"This is a temporary account held by a neutral third party to hold funds or documents until specific conditions of a transaction are met. As a buyer, it protects your interests during the closing process.","what_it_means":"In an acquisition, an escrow account is often used to hold a portion of the purchase price, known as a holdback or earnout, for a period post-closing. This protects you against undisclosed liabilities or ensures the seller meets certain post-closing obligations. Make sure the escrow agreement is clear on release conditions.","url":"https://dealroom.so/glossary/escrow-account","official_sources":[],"related":[{"slug":"earnout","term":"Earnout","url":"https://dealroom.so/glossary/earnout"},{"slug":"subordination-agreement","term":"Subordination agreement","url":"https://dealroom.so/glossary/subordination-agreement"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"Can funds from a personal investment account, like a brokerage account, count towards equity injection?","url":"https://dealroom.so/sba-loans/basics/can-funds-from-a-personal-investment-account-like-a-brokerage-account-count-towards-equity"},{"question":"Can funds from a personal investment account with fluctuating value, like a brokerage account, count towards equity?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-a-personal-investment-account-with-fluctuating-value-like-a-brokerage-accou"},{"question":"Can I use funds from a personal investment account, like a brokerage account, for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-investment-account-like-a-brokerage-account-for-my-equity-"},{"question":"Can funds from a personal investment account, like a brokerage account, count towards the SBA 7(a) loan equity injection?","url":"https://dealroom.so/for-lenders/questions/can-funds-from-a-personal-investment-account-like-a-brokerage-account-count-towards-the-sb"},{"question":"How does a lender verify equity injection funds from a personal investment account with fluctuating values, like a brokerage account?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-funds-from-a-personal-investment-account-with-fl"},{"question":"Can cash in the business bank account count as collateral?","url":"https://dealroom.so/sba-loans/basics/can-cash-in-the-business-bank-account-count-as-collateral"}]},"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 — Escrow account","url":"https://dealroom.so/glossary/escrow-account","source_type":"DealRoom Data"}}