{"ok":true,"canonical_url":"https://dealroom.so/glossary/license","api_url":"https://dealroom.so/api/public/glossary/license","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":"license","term":"License","group":"People and paperwork","definition":"A legal permission from a government authority or private entity to operate a business, practice a profession, or use intellectual property. It's crucial for legal operation and often a condition for your loan.","what_it_means":"Before closing, you must confirm that the business holds all necessary licenses and permits, and that they are transferable to you or that you can easily obtain new ones. Your lender will require proof of proper licensing for you and the business as part of the closing process.","url":"https://dealroom.so/glossary/license","official_sources":[],"related":[{"slug":"full-application","term":"Full Application","url":"https://dealroom.so/glossary/full-application"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"compliance","term":"Compliance","url":"https://dealroom.so/glossary/compliance"},{"slug":"sba-program-requirements","term":"SBA Program Requirements","url":"https://dealroom.so/glossary/sba-program-requirements"}],"related_questions":[{"question":"How does the SBA determine affiliation for businesses operating under a license agreement?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-determine-affiliation-for-businesses-operating-under-a-license-agreement"},{"question":"Can a professional license or intellectual property I developed be valued and count towards the 10% equity?","url":"https://dealroom.so/sba-7a/questions/can-a-professional-license-or-intellectual-property-i-developed-be-valued-and-count-toward"},{"question":"How does the \"franchise rule\" specifically apply to determine affiliation for an independent dealer or licensee model?","url":"https://dealroom.so/for-lenders/questions/how-does-the-franchise-rule-specifically-apply-to-determine-affiliation-for-an-independent"},{"question":"Are specific certifications or licenses required for my industry for SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/are-specific-certifications-or-licenses-required-for-my-industry-for-sba-7-a-loan-approval"},{"question":"Are there specific certifications or licenses required for my industry for SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-certifications-or-licenses-required-for-my-industry-for-sba-7-a-loan-ap"},{"question":"What if my business operates in a highly regulated industry, like childcare or medical services, requiring specific licenses?","url":"https://dealroom.so/sba-7a/questions/what-if-my-business-operates-in-a-highly-regulated-industry-like-childcare-or-medical-serv"}]},"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 — License","url":"https://dealroom.so/glossary/license","source_type":"DealRoom Data"}}