{"ok":true,"canonical_url":"https://dealroom.so/glossary/misrepresentation","api_url":"https://dealroom.so/api/public/glossary/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":"misrepresentation","term":"Misrepresentation","group":"People and paperwork","definition":"A false statement of fact made by one party to another, which induces the other party to enter into a contract. This can be intentional or unintentional.","what_it_means":"If the seller provides inaccurate financial data or business claims, it's a misrepresentation. Lenders and the SBA will scrutinize all information. Discovering misrepresentation during due diligence can invalidate your offer or affect your loan approval; post-closing, it can lead to legal action.","url":"https://dealroom.so/glossary/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":"fraud-allegation","term":"Fraud allegation","url":"https://dealroom.so/glossary/fraud-allegation"},{"slug":"nondisclosure","term":"Nondisclosure","url":"https://dealroom.so/glossary/nondisclosure"},{"slug":"disclosure-document","term":"Disclosure document","url":"https://dealroom.so/glossary/disclosure-document"},{"slug":"non-compliance","term":"Non-compliance","url":"https://dealroom.so/glossary/non-compliance"}],"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"}]},"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 — Misrepresentation","url":"https://dealroom.so/glossary/misrepresentation","source_type":"DealRoom Data"}}