{"ok":true,"canonical_url":"https://dealroom.so/glossary/purchase-contract","api_url":"https://dealroom.so/api/public/glossary/purchase-contract","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-contract","term":"Purchase Contract","group":"Doing the deal","definition":"The legally binding agreement between a buyer and seller detailing the terms and conditions of a business acquisition. It specifies what is being bought, the price, and closing conditions.","what_it_means":"Your Purchase Contract, sometimes called a definitive agreement, is the central document for the entire deal. It must clearly define the assets or stock being acquired, the purchase price allocation, and any contingencies. Both your lender and the SBA will review it carefully to ensure it meets their requirements and clearly outlines the use of loan proceeds.","url":"https://dealroom.so/glossary/purchase-contract","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"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":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[{"question":"How does a lender determine affiliation when a prior owner retains less than 20% equity and a consulting contract?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-affiliation-when-a-prior-owner-retains-less-than-20-equity-and"},{"question":"Can an SBA 7(a) loan be used to purchase a business where significant revenue comes from government contracts?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-where-significant-revenue-comes-from-go"},{"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":"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":"What documentation is required to request a guaranty purchase using the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-request-a-guaranty-purchase-using-the-universal-purchase"},{"question":"What specific conditions trigger affiliation due to contractual relationships or franchise agreements?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-trigger-affiliation-due-to-contractual-relationships-or-franchise"}]},"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 Contract","url":"https://dealroom.so/glossary/purchase-contract","source_type":"DealRoom Data"}}