{"ok":true,"canonical_url":"https://dealroom.so/glossary/outstanding-liability","api_url":"https://dealroom.so/api/public/glossary/outstanding-liability","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":"outstanding-liability","term":"Outstanding Liability","group":"Reading the business","definition":"An unsettled financial obligation owed by the business to another party. Unaccounted or hidden liabilities can significantly devalue a business and affect its cash flow, impacting your ability to repay an SBA loan.","what_it_means":"During due diligence, thoroughly review financial statements, contracts, and legal records to identify all outstanding liabilities. These could include unpaid taxes, pending lawsuits, or unfulfilled contractual obligations. Ensure the purchase agreement clearly allocates responsibility for existing liabilities between you and the seller.","url":"https://dealroom.so/glossary/outstanding-liability","official_sources":[],"related":[{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"What if the business being acquired has significant outstanding Accounts Receivable (AR)?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-being-acquired-has-significant-outstanding-accounts-receivable-ar"},{"question":"What if a business applicant has outstanding federal tax liens or delinquencies?","url":"https://dealroom.so/for-lenders/questions/what-if-a-business-applicant-has-outstanding-federal-tax-liens-or-delinquencies"},{"question":"What if a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/for-lenders/questions/what-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"},{"question":"What happens if a borrower has outstanding judgments or liens from non-federal entities?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-borrower-has-outstanding-judgments-or-liens-from-non-federal-entities"},{"question":"What if the business I am acquiring has significant outstanding tax liens or judgments?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-am-acquiring-has-significant-outstanding-tax-liens-or-judgments"},{"question":"What happens if the business being acquired has significant outstanding tax liabilities at closing?","url":"https://dealroom.so/for-lenders/questions/what-happens-if-the-business-being-acquired-has-significant-outstanding-tax-liabilities-at"}]},"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 — Outstanding Liability","url":"https://dealroom.so/glossary/outstanding-liability","source_type":"DealRoom Data"}}