{"ok":true,"canonical_url":"https://dealroom.so/glossary/key-employees","api_url":"https://dealroom.so/api/public/glossary/key-employees","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":"key-employees","term":"Key employees","group":"People and paperwork","definition":"These are employees whose unique skills, knowledge, or relationships are critical to the business's success and continued operation. Losing them can significantly impact value.","what_it_means":"Identify key employees early in due diligence. Understand their roles, compensation, and retention plans. You'll want to secure their commitment with new employment agreements or incentives to ensure a smooth transition and maintain business continuity post-acquisition. The SBA often requires life insurance on these individuals.","url":"https://dealroom.so/glossary/key-employees","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"}],"related":[{"slug":"officers","term":"Officers","url":"https://dealroom.so/glossary/officers"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"non-compete","term":"Non-compete","url":"https://dealroom.so/glossary/non-compete"},{"slug":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"}],"related_questions":[{"question":"If key employees resign during due diligence, could this kill the SBA loan approval?","url":"https://dealroom.so/sba-7a/questions/if-key-employees-resign-during-due-diligence-could-this-kill-the-sba-loan-approval"},{"question":"How are common officers or shared key employees between businesses evaluated for affiliation under SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-are-common-officers-or-shared-key-employees-between-businesses-evaluated-for-affiliati"},{"question":"What specific scenarios involving shared directors, officers, or key employees constitute 'common management' triggering affiliation for SBA size determination?","url":"https://dealroom.so/for-lenders/questions/what-specific-scenarios-involving-shared-directors-officers-or-key-employees-constitute-co"},{"question":"When is a lender required to conduct a criminal background check for non-owner managers or key employees of an applicant business?","url":"https://dealroom.so/for-lenders/questions/when-is-a-lender-required-to-conduct-a-criminal-background-check-for-non-owner-managers-or"},{"question":"Does my business need to have employees, or can I be a sole proprietor?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-have-employees-or-can-i-be-a-sole-proprietor"},{"question":"Does my business have to have employees to qualify for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/does-my-business-have-to-have-employees-to-qualify-for-an-sba-7-a-loan"}]},"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 — Key employees","url":"https://dealroom.so/glossary/key-employees","source_type":"DealRoom Data"}}