{"ok":true,"canonical_url":"https://dealroom.so/glossary/material-misrepresentation","api_url":"https://dealroom.so/api/public/glossary/material-misrepresentation","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-misrepresentation","term":"Material misrepresentation","group":"People and paperwork","definition":"Providing false or misleading information that significantly influences a lender's decision to approve a loan. This is a serious offense that can lead to loan acceleration and legal action.","what_it_means":"During your loan application, any false statement or omission of crucial facts that would have changed the lender's underwriting decision constitutes material misrepresentation. This can result in your loan being called due, the SBA denying its guaranty, and potential borrower fraud charges. Be honest and accurate.","url":"https://dealroom.so/glossary/material-misrepresentation","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"borrower-fraud","term":"Borrower fraud","url":"https://dealroom.so/glossary/borrower-fraud"},{"slug":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"},{"slug":"penalty-of-perjury","term":"Penalty of perjury","url":"https://dealroom.so/glossary/penalty-of-perjury"}],"related_questions":[{"question":"What constitutes a \"material misrepresentation\" by a borrower that could lead to a 7(a) guaranty denial?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-misrepresentation-by-a-borrower-that-could-lead-to-a-7-a-guara"},{"question":"What constitutes a \"material misrepresentation\" by a borrower that could lead to an outright 7(a) guaranty denial?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-misrepresentation-by-a-borrower-that-could-lead-to-an-outright"},{"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"}]},"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 misrepresentation","url":"https://dealroom.so/glossary/material-misrepresentation","source_type":"DealRoom Data"}}