{"ok":true,"canonical_url":"https://dealroom.so/glossary/proprietor","api_url":"https://dealroom.so/api/public/glossary/proprietor","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":"proprietor","term":"Proprietor","group":"People and paperwork","definition":"An individual who owns and operates a business by themselves, without a separate legal entity. They are personally responsible for all business debts and liabilities.","what_it_means":"If you're buying a sole proprietorship, you're buying directly from an individual, not a corporation or LLC. This can simplify some legal aspects but means the seller's personal finances and liabilities are directly tied to the business. Ensure clear asset transfer and liability assumption.","url":"https://dealroom.so/glossary/proprietor","official_sources":[{"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":"sole-proprietor","term":"Sole proprietor","url":"https://dealroom.so/glossary/sole-proprietor"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"officer","term":"Officer","url":"https://dealroom.so/glossary/officer"}],"related_questions":[{"question":"Does my business need to have employees, or can I be a sole proprietor?","url":"https://dealroom.so/sba-loans/basics/does-my-business-need-to-have-employees-or-can-i-be-a-sole-proprietor"},{"question":"What are the specific requirements for business continuity if the seller is the sole proprietor?","url":"https://dealroom.so/sba-7a/questions/what-are-the-specific-requirements-for-business-continuity-if-the-seller-is-the-sole-propr"},{"question":"Does my business legal structure (like LLC or Sole Proprietorship) affect SBA 7(a) loan eligibility?","url":"https://dealroom.so/sba-loans/basics/does-my-business-legal-structure-like-llc-or-sole-proprietorship-affect-sba-7-a-loan-eligi"},{"question":"What are the key considerations for a lender when approving a material change in the borrower's business entity structure (e.g., sole proprietorship to LLC) during servicing?","url":"https://dealroom.so/for-lenders/questions/what-are-the-key-considerations-for-a-lender-when-approving-a-material-change-in-the-borro"}]},"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 — Proprietor","url":"https://dealroom.so/glossary/proprietor","source_type":"DealRoom Data"}}