{"ok":true,"canonical_url":"https://dealroom.so/glossary/representations-and-warranties","api_url":"https://dealroom.so/api/public/glossary/representations-and-warranties","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":"representations-and-warranties","term":"Representations and warranties","group":"Doing the deal","definition":"These are statements of fact made by the seller about the business at the time of sale, backed by a promise that they are true. They protect you if the business isn't as described.","what_it_means":"Your purchase agreement will be packed with these. Scrutinize them during Due diligence to ensure they cover all critical aspects of the business, such as financials, contracts, and legal status. If they turn out to be false post-closing, you may have recourse against the seller, potentially involving an Escrow / holdback.","url":"https://dealroom.so/glossary/representations-and-warranties","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"escrow-holdback","term":"Escrow / holdback","url":"https://dealroom.so/glossary/escrow-holdback"},{"slug":"material-information","term":"Material information","url":"https://dealroom.so/glossary/material-information"}],"related_questions":[{"question":"What specific representations and warranties must a lender make when selling the guaranteed portion of a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-representations-and-warranties-must-a-lender-make-when-selling-the-guarantee"},{"question":"What specific representations and warranties does the SBA expect in a purchase agreement for a change-of-ownership loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-representations-and-warranties-does-the-sba-expect-in-a-purchase-agreement-f"},{"question":"What if the seller's representations about the business's financials turn out to be significantly inaccurate during diligence?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-s-representations-about-the-business-s-financials-turn-out-to-be-signif"},{"question":"What is the relationship between SBA Form 1919 and 1920, and which is currently required for 7(a) loan applications?","url":"https://dealroom.so/for-lenders/questions/what-is-the-relationship-between-sba-form-1919-and-1920-and-which-is-currently-required-fo"},{"question":"What is the ongoing annual service fee for a 7(a) loan, and how is it calculated and remitted by the lender?","url":"https://dealroom.so/for-lenders/questions/what-is-the-ongoing-annual-service-fee-for-a-7-a-loan-and-how-is-it-calculated-and-remitte"},{"question":"Which critical loan terms and borrower data must match precisely between the lender's system and E-Tran for 7(a) submissions?","url":"https://dealroom.so/for-lenders/questions/which-critical-loan-terms-and-borrower-data-must-match-precisely-between-the-lender-s-syst"}]},"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 — Representations and warranties","url":"https://dealroom.so/glossary/representations-and-warranties","source_type":"DealRoom Data"}}