{"ok":true,"canonical_url":"https://dealroom.so/glossary/non-compliance","api_url":"https://dealroom.so/api/public/glossary/non-compliance","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":"non-compliance","term":"Non-compliance","group":"People and paperwork","definition":"Failure to adhere to applicable laws, regulations, or contractual obligations. This can result in fines, penalties, or legal action against the business.","what_it_means":"Discovering a history of non-compliance, whether with environmental regulations, labor laws, or industry-specific rules, poses a significant risk. Your due diligence must identify any past or ongoing issues, as you will inherit these liabilities. Factor in potential costs to bring the business into compliance.","url":"https://dealroom.so/glossary/non-compliance","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":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"fraud-allegation","term":"Fraud allegation","url":"https://dealroom.so/glossary/fraud-allegation"},{"slug":"misrepresentation","term":"Misrepresentation","url":"https://dealroom.so/glossary/misrepresentation"},{"slug":"tax-lien","term":"Tax lien","url":"https://dealroom.so/glossary/tax-lien"}],"related_questions":[{"question":"What constitutes 'material non-compliance' with SBA lending policies that typically leads to a guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-material-non-compliance-with-sba-lending-policies-that-typically-leads-to"},{"question":"What constitutes 'material non-compliance' by a lender during underwriting or closing that could result in a repair to the 7(a) guaranty?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-material-non-compliance-by-a-lender-during-underwriting-or-closing-that-c"},{"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":"How does SBA Form 1919 ensure borrower eligibility compliance for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-sba-form-1919-ensure-borrower-eligibility-compliance-for-a-7-a-loan"},{"question":"Does an SBA 7(a) loan require specific reporting or compliance after I receive the funds?","url":"https://dealroom.so/sba-loans/basics/does-an-sba-7-a-loan-require-specific-reporting-or-compliance-after-i-receive-the-funds"},{"question":"What if the business I'm buying has a history of environmental violations or ongoing compliance issues?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-a-history-of-environmental-violations-or-ongoing-compl"}]},"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 — Non-compliance","url":"https://dealroom.so/glossary/non-compliance","source_type":"DealRoom Data"}}