{"ok":true,"canonical_url":"https://dealroom.so/glossary/omission-of-material-fact","api_url":"https://dealroom.so/api/public/glossary/omission-of-material-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-material-fact","term":"Omission of Material Fact","group":"People and paperwork","definition":"This means intentionally failing to disclose important information that would influence a decision, like a loan approval. Buyers care because it's considered fraud by the SBA and can lead to severe penalties, including loan denial or revocation.","what_it_means":"The SBA takes nondisclosure seriously. If you or the seller intentionally leave out crucial details on loan applications or financial statements, it can invalidate your loan guaranty or lead to accusations of fraud. Always ensure all information provided to the lender is complete and accurate.","url":"https://dealroom.so/glossary/omission-of-material-fact","official_sources":[{"slug":"sba-form-1919","title":"SBA Form 1919 — Borrower Information Form","official_url":"https://www.sba.gov/document/sba-form-1919-borrower-information-form","official_label":"View on SBA.gov","authority_tier":4,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sba-form-1919"},{"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-charge","term":"Fraud Charge","url":"https://dealroom.so/glossary/fraud-charge"},{"slug":"intentional-misrepresentation","term":"Intentional misrepresentation","url":"https://dealroom.so/glossary/intentional-misrepresentation"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"},{"slug":"penalty-of-perjury","term":"Penalty of perjury","url":"https://dealroom.so/glossary/penalty-of-perjury"}],"related_questions":[{"question":"What is the impact of an unapproved material servicing action on the SBA's 7(a) loan guaranty?","url":"https://dealroom.so/for-lenders/questions/what-is-the-impact-of-an-unapproved-material-servicing-action-on-the-sba-s-7-a-loan-guaran"},{"question":"What constitutes a \"material default\" by a 7(a) lender that would lead to an outright denial of a guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-default-by-a-7-a-lender-that-would-lead-to-an-outright-denial-"},{"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 — Omission of Material Fact","url":"https://dealroom.so/glossary/omission-of-material-fact","source_type":"DealRoom Data"}}