{"ok":true,"canonical_url":"https://dealroom.so/glossary/fallback-provisions","api_url":"https://dealroom.so/api/public/glossary/fallback-provisions","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":"fallback-provisions","term":"Fallback Provisions","group":"Doing the deal","definition":"Contingency plans or alternative arrangements built into a deal or loan agreement to address specific risks or potential failures. These protect you if certain conditions aren't met.","what_it_means":"In complex deals, fallback provisions might address scenarios like a key supplier contract falling through, or the business not performing as projected post-acquisition. For SBA loans, this could refer to backup collateral or alternative repayment structures if the primary plan fails. Always consider what happens if things don't go as planned.","url":"https://dealroom.so/glossary/fallback-provisions","official_sources":[],"related":[{"slug":"special-conditions","term":"Special Conditions","url":"https://dealroom.so/glossary/special-conditions"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What if a franchise agreement contains provisions for indemnification that concern the SBA?","url":"https://dealroom.so/for-lenders/questions/what-if-a-franchise-agreement-contains-provisions-for-indemnification-that-concern-the-sba"},{"question":"How does the SBA evaluate a franchise agreement not on the directory for acceptable franchisor control provisions?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-a-franchise-agreement-not-on-the-directory-for-acceptable-franch"},{"question":"What specific provisions in a franchise agreement, if present, would render a franchise ineligible for 7(a) financing?","url":"https://dealroom.so/for-lenders/questions/what-specific-provisions-in-a-franchise-agreement-if-present-would-render-a-franchise-inel"},{"question":"How does a lender determine if a franchise agreement contains impermissible control provisions not listed on the Directory?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-if-a-franchise-agreement-contains-impermissible-control-provis"},{"question":"Which specific provisions in a franchise agreement raise red flags for undue franchisor control, making it ineligible for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/which-specific-provisions-in-a-franchise-agreement-raise-red-flags-for-undue-franchisor-co"}]},"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 — Fallback Provisions","url":"https://dealroom.so/glossary/fallback-provisions","source_type":"DealRoom Data"}}