{"ok":true,"canonical_url":"https://dealroom.so/glossary/liability","api_url":"https://dealroom.so/api/public/glossary/liability","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":"liability","term":"Liability","group":"Reading the business","definition":"A liability is a financial obligation or debt owed by an individual or business. For a buyer, understanding a business's liabilities is key to assessing its true financial health.","what_it_means":"In an acquisition, you must identify all business liabilities, including debts, accounts payable, and potential legal claims, which impact the business's balance sheet. Your personal guarantee on an SBA 7(a) loan also creates a significant personal liability.","url":"https://dealroom.so/glossary/liability","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":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"personal-guarantee","term":"Personal guarantee","url":"https://dealroom.so/glossary/personal-guarantee"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"global-cash-flow","term":"Global cash flow","url":"https://dealroom.so/glossary/global-cash-flow"}],"related_questions":[]},"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 — Liability","url":"https://dealroom.so/glossary/liability","source_type":"DealRoom Data"}}