{"ok":true,"canonical_url":"https://dealroom.so/glossary/omission-of-material-facts","api_url":"https://dealroom.so/api/public/glossary/omission-of-material-facts","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-facts","term":"Omission of material facts","group":"People and paperwork","definition":"Omission of material facts is failing to disclose important information that would influence a decision, even if no false statements were made. This is as serious as outright lying in a business transaction.","what_it_means":"If a seller \"forgets\" to mention a major client is leaving, that's an Omission of material facts. For buyers, not disclosing a past bankruptcy is also an omission. Both can be grounds for legal action and, for SBA loans, will result in denial or even a Call of the guaranty if discovered later.","url":"https://dealroom.so/glossary/omission-of-material-facts","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":"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":"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":"nondisclosure","term":"Nondisclosure","url":"https://dealroom.so/glossary/nondisclosure"},{"slug":"fraud-allegation","term":"Fraud allegation","url":"https://dealroom.so/glossary/fraud-allegation"}],"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 facts","url":"https://dealroom.so/glossary/omission-of-material-facts","source_type":"DealRoom Data"}}