{"ok":true,"canonical_url":"https://dealroom.so/glossary/good-faith","api_url":"https://dealroom.so/api/public/glossary/good-faith","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":"good-faith","term":"Good faith","group":"Doing the deal","definition":"Acting honestly and fairly without intent to defraud or mislead. In a deal, it means all parties are genuinely trying to reach an agreement and fulfill their obligations.","what_it_means":"You and the seller are expected to negotiate and act in good faith throughout the acquisition process, especially after signing an LOI. This includes transparently sharing information during due diligence. If either party acts in bad faith, it can derail the deal or lead to legal issues.","url":"https://dealroom.so/glossary/good-faith","official_sources":[],"related":[{"slug":"nda-buyer-verification","term":"NDA","url":"https://dealroom.so/glossary/nda-buyer-verification"},{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"}],"related_questions":[{"question":"Do I need good personal credit to qualify for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/do-i-need-good-personal-credit-to-qualify-for-an-sba-7-a-loan"},{"question":"What if my personal debt-to-income ratio is high, even with a good credit score?","url":"https://dealroom.so/sba-7a/questions/what-if-my-personal-debt-to-income-ratio-is-high-even-with-a-good-credit-score"},{"question":"Is an SBA 7(a) loan a good way to buy out a current business partner?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-a-good-way-to-buy-out-a-current-business-partner"},{"question":"How does a lender assess 'good character' for all principals on a 7(a) loan application?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-good-character-for-all-principals-on-a-7-a-loan-application"},{"question":"Is an SBA 7(a) loan a good option for someone just starting a brand-new business?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-a-good-option-for-someone-just-starting-a-brand-new-business"},{"question":"What if I have a high debt-to-income ratio personally, even with a good credit score?","url":"https://dealroom.so/sba-7a/questions/what-if-i-have-a-high-debt-to-income-ratio-personally-even-with-a-good-credit-score"}]},"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 — Good faith","url":"https://dealroom.so/glossary/good-faith","source_type":"DealRoom Data"}}