{"ok":true,"canonical_url":"https://dealroom.so/glossary/purchase-agreement","api_url":"https://dealroom.so/api/public/glossary/purchase-agreement","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":"purchase-agreement","term":"Purchase agreement","group":"Doing the deal","definition":"The legally binding contract detailing all terms and conditions of a business acquisition, signed by both buyer and seller. Buyers care because this document dictates exactly what you're buying, for how much, and under what conditions.","what_it_means":"This is the critical document for your SBA lender, as it outlines the deal's structure, including asset purchase or stock purchase, purchase price allocation, and any seller financing. Work with legal counsel to ensure it protects your interests and aligns with SBA eligibility rules before signing.","url":"https://dealroom.so/glossary/purchase-agreement","official_sources":[],"related":[{"slug":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"What distinguishes a cross-purchase from an entity-purchase buy-sell agreement regarding life insurance?","url":"https://dealroom.so/sba-7a/questions/what-distinguishes-a-cross-purchase-from-an-entity-purchase-buy-sell-agreement-regarding-l"},{"question":"How does the purchase agreement structure affect an SBA partner buyout?","url":"https://dealroom.so/sba-7a/questions/how-does-the-purchase-agreement-structure-affect-an-sba-partner-buyout"},{"question":"What happens if the seller terminates the purchase agreement mid-process?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-seller-terminates-the-purchase-agreement-mid-process"},{"question":"What are the key distinctions between cross-purchase and entity-purchase buy-sell agreements?","url":"https://dealroom.so/sba-7a/questions/what-are-the-key-distinctions-between-cross-purchase-and-entity-purchase-buy-sell-agreemen"},{"question":"Can an earn-out provision in the purchase agreement affect my SBA 7(a) loan approval?","url":"https://dealroom.so/sba-7a/questions/can-an-earn-out-provision-in-the-purchase-agreement-affect-my-sba-7-a-loan-approval"},{"question":"Can an earn-out provision in a purchase agreement affect 7(a) loan eligibility or structure?","url":"https://dealroom.so/for-lenders/questions/can-an-earn-out-provision-in-a-purchase-agreement-affect-7-a-loan-eligibility-or-structure"}]},"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 — Purchase agreement","url":"https://dealroom.so/glossary/purchase-agreement","source_type":"DealRoom Data"}}