{"ok":true,"canonical_url":"https://dealroom.so/glossary/fraud-allegation","api_url":"https://dealroom.so/api/public/glossary/fraud-allegation","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":"fraud-allegation","term":"Fraud allegation","group":"People and paperwork","definition":"A claim that someone intentionally deceived another for personal gain. If proven, it can lead to serious legal consequences for the involved parties.","what_it_means":"Any hint of fraud in the business's history or in the loan application process is a red flag for the SBA and lenders. Your due diligence must uncover any past or pending allegations against the seller or the business, as these can jeopardize loan approval or future ownership. Verify all financial statements and representations.","url":"https://dealroom.so/glossary/fraud-allegation","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":"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"}],"related":[{"slug":"fraud","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"misrepresentation","term":"Misrepresentation","url":"https://dealroom.so/glossary/misrepresentation"},{"slug":"nondisclosure","term":"Nondisclosure","url":"https://dealroom.so/glossary/nondisclosure"},{"slug":"non-compliance","term":"Non-compliance","url":"https://dealroom.so/glossary/non-compliance"}],"related_questions":[{"question":"What specific documentation is required in the Universal Purchase Package (UPP) to support a request for guaranty purchase when the borrower has defaulted due to fraud?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-in-the-universal-purchase-package-upp-to-support-a"}]},"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 — Fraud allegation","url":"https://dealroom.so/glossary/fraud-allegation","source_type":"DealRoom Data"}}