{"ok":true,"canonical_url":"https://dealroom.so/glossary/loi","api_url":"https://dealroom.so/api/public/glossary/loi","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":"loi","term":"LOI","aka":"letter of intent","group":"Doing the deal","definition":"A short, mostly non-binding agreement on price and terms that starts the formal process. Underwriting time is measured from here.","what_it_means":"The LOI is your first binding handshake — it defines price, deal structure, exclusivity period, and key conditions before you commit to full due diligence and financing. Most LOIs are non-binding except for the exclusivity (no-shop) clause, which gives you a window to complete underwriting without the seller taking other offers. Experienced buyers include a financing contingency so they can exit cleanly if the SBA underwriting doesn't support the deal.","url":"https://dealroom.so/glossary/loi","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"change-of-ownership","term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"},{"slug":"earnout","term":"Earnout","url":"https://dealroom.so/glossary/earnout"},{"slug":"escrow-holdback","term":"Escrow / holdback","url":"https://dealroom.so/glossary/escrow-holdback"}],"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 — LOI","url":"https://dealroom.so/glossary/loi","source_type":"DealRoom Data"}}