{"ok":true,"canonical_url":"https://dealroom.so/glossary/material-deviation","api_url":"https://dealroom.so/api/public/glossary/material-deviation","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":"material-deviation","term":"Material Deviation","group":"Doing the deal","definition":"This is a significant change from what was originally presented or approved in your SBA loan application or authorization.","what_it_means":"A material deviation could involve a change in ownership structure, a substantial shift in the use of proceeds, or major undisclosed liabilities. Any such deviation from your SBA Loan Authorization or application can jeopardize your loan's guarantee, so disclose everything upfront and get lender approval for any changes.","url":"https://dealroom.so/glossary/material-deviation","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":"loan-covenant","term":"Loan Covenant","url":"https://dealroom.so/glossary/loan-covenant"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"},{"slug":"omission-of-material-facts","term":"Omission of material facts","url":"https://dealroom.so/glossary/omission-of-material-facts"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"}],"related_questions":[{"question":"What are the consequences if SBA Form 1919 contains material omissions or misrepresentations?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-sba-form-1919-contains-material-omissions-or-misrepresentatio"},{"question":"Can a lender approve a material change to collateral without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-material-change-to-collateral-without-prior-sba-approval"},{"question":"What constitutes a 'material adverse change' that could affect my loan approval after application?","url":"https://dealroom.so/sba-7a/questions/what-constitutes-a-material-adverse-change-that-could-affect-my-loan-approval-after-applic"},{"question":"Which material servicing actions can a 7(a) lender take without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/which-material-servicing-actions-can-a-7-a-lender-take-without-prior-sba-approval"},{"question":"How does an unapproved material servicing action impact the SBA's 7(a) loan guaranty?","url":"https://dealroom.so/for-lenders/questions/how-does-an-unapproved-material-servicing-action-impact-the-sba-s-7-a-loan-guaranty"},{"question":"How does a lender correct a material error in the E-Tran submission after receiving an authorization?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-correct-a-material-error-in-the-e-tran-submission-after-receiving-an-aut"}]},"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 — Material Deviation","url":"https://dealroom.so/glossary/material-deviation","source_type":"DealRoom Data"}}