{"ok":true,"canonical_url":"https://dealroom.so/glossary/option","api_url":"https://dealroom.so/api/public/glossary/option","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":"option","term":"Option","group":"Doing the deal","definition":"A contract giving the holder the right, but not the obligation, to buy or sell an asset at a specified price within a certain timeframe.","what_it_means":"In a business acquisition, an option might relate to real estate or future equity. Ensure any options held by the seller or others are clearly understood and don't create unexpected obligations or dilution for you after closing.","url":"https://dealroom.so/glossary/option","official_sources":[],"related":[{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"earnout","term":"Earnout","url":"https://dealroom.so/glossary/earnout"},{"slug":"escrow-holdback","term":"Escrow / holdback","url":"https://dealroom.so/glossary/escrow-holdback"},{"slug":"non-compete","term":"Non-compete","url":"https://dealroom.so/glossary/non-compete"}],"related_questions":[{"question":"Does the SBA 7(a) loan program have an 'Express' option for quicker approvals?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-loan-program-have-an-express-option-for-quicker-approvals"},{"question":"Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?","url":"https://dealroom.so/for-lenders/questions/does-an-unfunded-stock-option-agreement-trigger-affiliation-for-sba-7-a-size-standard-calc"},{"question":"Is an SBA 7(a) loan a good option for someone just starting a brand-new business?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-a-good-option-for-someone-just-starting-a-brand-new-business"},{"question":"Can a lender change the base rate option for a variable rate 7(a) loan after closing?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-change-the-base-rate-option-for-a-variable-rate-7-a-loan-after-closing"},{"question":"When does an unexercised option to acquire ownership in a business trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-an-unexercised-option-to-acquire-ownership-in-a-business-trigger-affiliation-for"},{"question":"Is an SBA 7(a) loan an option if I want to buy out a business partner's share?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-an-option-if-i-want-to-buy-out-a-business-partner-s-share"}]},"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 — Option","url":"https://dealroom.so/glossary/option","source_type":"DealRoom Data"}}