{"ok":true,"canonical_url":"https://dealroom.so/glossary/material-omission","api_url":"https://dealroom.so/api/public/glossary/material-omission","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-omission","term":"Material Omission","group":"People and paperwork","definition":"The failure to disclose a significant fact that, if known, would have influenced a party's decision or the terms of a deal. This is serious and can invalidate agreements or lead to legal action.","what_it_means":"If a seller fails to disclose crucial information, like a pending lawsuit or a major client loss, it's a material omission. This can impact the business valuation, the lender's underwriting decision, and your ability to operate post-closing. Your due diligence is designed to uncover these, but if one surfaces later, it could constitute fraud.","url":"https://dealroom.so/glossary/material-omission","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":"disclosure-obligation","term":"Disclosure Obligation","url":"https://dealroom.so/glossary/disclosure-obligation"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"},{"slug":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"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":"What specific underwriting failures or omissions by a lender are categorized as 'material non-compliance' by the SBA, risking 7(a) guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-underwriting-failures-or-omissions-by-a-lender-are-categorized-as-material-n"},{"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"}]},"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 Omission","url":"https://dealroom.so/glossary/material-omission","source_type":"DealRoom Data"}}