{"ok":true,"canonical_url":"https://dealroom.so/glossary/proper-permitting","api_url":"https://dealroom.so/api/public/glossary/proper-permitting","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":"proper-permitting","term":"Proper Permitting","group":"People and paperwork","definition":"Ensures the business has all necessary licenses and permits to operate legally. Without them, you risk fines or business closure.","what_it_means":"Before closing, verify the seller holds all required local, state, and federal permits for their specific industry and location. A missing or expired permit can delay your loan or invalidate the deal. Make sure these are transferable or easily re-obtainable in your name.","url":"https://dealroom.so/glossary/proper-permitting","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"compliance","term":"Compliance","url":"https://dealroom.so/glossary/compliance"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"}],"related_questions":[{"question":"How does a lender ensure proper collateral assignment of life insurance on multiple key principals?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-ensure-proper-collateral-assignment-of-life-insurance-on-multiple-key-pr"},{"question":"What are a lender's responsibilities concerning the proper use of 7(a) loan proceeds by the borrower?","url":"https://dealroom.so/for-lenders/questions/what-are-a-lender-s-responsibilities-concerning-the-proper-use-of-7-a-loan-proceeds-by-the"},{"question":"What is the requirement for a lender to ensure proper maintenance of life insurance collateral on key principals?","url":"https://dealroom.so/for-lenders/questions/what-is-the-requirement-for-a-lender-to-ensure-proper-maintenance-of-life-insurance-collat"},{"question":"What documentation is specifically required for a lender to demonstrate proper subordination of a seller note on full standby?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-specifically-required-for-a-lender-to-demonstrate-proper-subordinati"},{"question":"How does a lender confirm proper U.S. residency status for an owner holding a Green Card for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-confirm-proper-u-s-residency-status-for-an-owner-holding-a-green-card-fo"}]},"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 — Proper Permitting","url":"https://dealroom.so/glossary/proper-permitting","source_type":"DealRoom Data"}}