{"ok":true,"canonical_url":"https://dealroom.so/glossary/omission-of-fact","api_url":"https://dealroom.so/api/public/glossary/omission-of-fact","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":"omission-of-fact","term":"Omission of Fact","group":"People and paperwork","definition":"This is failing to disclose important information, even if unintentional, that could influence a lender's decision or the deal's terms. It's serious because it can lead to loan denial or even fraud allegations.","what_it_means":"During due diligence and the loan application process, you and the seller must provide all material information. Deliberately withholding or inadvertently overlooking critical details about the business's finances or legal issues can be considered an omission of fact. Ensure all parties fully disclose everything.","url":"https://dealroom.so/glossary/omission-of-fact","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","term":"Fraud","url":"https://dealroom.so/glossary/fraud"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"},{"slug":"misrepresentation","term":"Misrepresentation","url":"https://dealroom.so/glossary/misrepresentation"},{"slug":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"}],"related_questions":[{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"What factors should a lender assess regarding a seller's post-closing consulting agreement in a change of ownership?","url":"https://dealroom.so/for-lenders/questions/what-factors-should-a-lender-assess-regarding-a-seller-s-post-closing-consulting-agreement"},{"question":"What is the primary factor determining the interest rate on an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-primary-factor-determining-the-interest-rate-on-an-sba-7-a-loan"},{"question":"What is the primary factor a lender considers when evaluating the cash flow from an acquired business?","url":"https://dealroom.so/sba-7a/questions/what-is-the-primary-factor-a-lender-considers-when-evaluating-the-cash-flow-from-an-acquir"},{"question":"What is the primary factor the SBA considers when evaluating a new business owner's management experience?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-factor-the-sba-considers-when-evaluating-a-new-business-owner-s-manage"},{"question":"What is the primary factor the SBA considers when evaluating management experience for a new business acquisition?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-factor-the-sba-considers-when-evaluating-management-experience-for-a-n"}]},"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 — Omission of Fact","url":"https://dealroom.so/glossary/omission-of-fact","source_type":"DealRoom Data"}}