{"ok":true,"canonical_url":"https://dealroom.so/glossary/formal-amendment","api_url":"https://dealroom.so/api/public/glossary/formal-amendment","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":"formal-amendment","term":"Formal Amendment","group":"People and paperwork","definition":"A formal amendment is a written change or addition to a legal document, such as a loan agreement or purchase agreement. It legally modifies the original terms.","what_it_means":"During the deal process, if any terms in the LOI, purchase agreement, or SBA Loan Authorization need to change, a formal amendment is required. Ensure all parties sign and date these amendments to legally incorporate the revisions and avoid future disputes.","url":"https://dealroom.so/glossary/formal-amendment","official_sources":[],"related":[{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"}],"related_questions":[{"question":"Under what specific circumstances is a lender permitted to make minor modifications to the 7(a) loan authorization without requesting a formal amendment from SBA?","url":"https://dealroom.so/for-lenders/questions/under-what-specific-circumstances-is-a-lender-permitted-to-make-minor-modifications-to-the"},{"question":"How does a lender process a 7(a) loan authorization amendment in the E-Tran system?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-process-a-7-a-loan-authorization-amendment-in-the-e-tran-system"},{"question":"Does the SBA require me to create a formal business plan to apply?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-require-me-to-create-a-formal-business-plan-to-apply"},{"question":"How does a lender process a 7(a) loan authorization amendment in the E-Tran system after initial approval?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-process-a-7-a-loan-authorization-amendment-in-the-e-tran-system-after-in"},{"question":"Do I need a formal business plan to apply for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/do-i-need-a-formal-business-plan-to-apply-for-an-sba-7-a-loan"},{"question":"What specific due diligence is required for an unlisted franchise agreement lacking SBA formal review?","url":"https://dealroom.so/for-lenders/questions/what-specific-due-diligence-is-required-for-an-unlisted-franchise-agreement-lacking-sba-fo"}]},"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 — Formal Amendment","url":"https://dealroom.so/glossary/formal-amendment","source_type":"DealRoom Data"}}