{"ok":true,"canonical_url":"https://dealroom.so/glossary/material-information","api_url":"https://dealroom.so/api/public/glossary/material-information","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-information","term":"Material information","group":"People and paperwork","definition":"Material information refers to facts significant enough to influence a reasonable person's decision. In a business acquisition, this includes anything that would impact your decision to purchase or the lender's decision to fund.","what_it_means":"Both buyers and sellers have an obligation to disclose Material information during due diligence. This includes financial performance, legal issues, or operational problems. Failing to disclose it can lead to claims of Intentional misrepresentation or Omission of material facts, jeopardizing the deal or causing post-closing disputes.","url":"https://dealroom.so/glossary/material-information","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":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"},{"slug":"omission-of-material-facts","term":"Omission of material facts","url":"https://dealroom.so/glossary/omission-of-material-facts"},{"slug":"disclosure-document","term":"Disclosure document","url":"https://dealroom.so/glossary/disclosure-document"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What critical information often missing from a Universal Purchase Package (UPP) leads to an SBA request for more information?","url":"https://dealroom.so/for-lenders/questions/what-critical-information-often-missing-from-a-universal-purchase-package-upp-leads-to-an-"},{"question":"Does misrepresenting financial information on the SBA application automatically kill approval?","url":"https://dealroom.so/sba-7a/questions/does-misrepresenting-financial-information-on-the-sba-application-automatically-kill-appro"},{"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 is the primary purpose of SBA Form 1919, 'Borrower Information Form'?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-purpose-of-sba-form-1919-borrower-information-form"},{"question":"Can failing to disclose information kill my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/can-failing-to-disclose-information-kill-my-sba-7-a-loan-approval"}]},"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 information","url":"https://dealroom.so/glossary/material-information","source_type":"DealRoom Data"}}