{"ok":true,"canonical_url":"https://dealroom.so/glossary/self-dealing","api_url":"https://dealroom.so/api/public/glossary/self-dealing","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":"self-dealing","term":"Self-dealing","group":"People and paperwork","definition":"This occurs when someone in a position of trust acts in their own best interest rather than the interest of another party, like a seller structuring terms to benefit themselves unfairly. The SBA strictly prohibits this in loan transactions.","what_it_means":"The SBA is vigilant about \"self-dealing\" in all aspects of a 7(a) loan, especially with related parties. Any transactions, such as seller notes, leases, or asset valuations, must be justified as arm's-length to avoid impropriety and potential loan eligibility issues.","url":"https://dealroom.so/glossary/self-dealing","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"},{"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":"arm-s-length-terms","term":"Arm's-length terms","url":"https://dealroom.so/glossary/arm-s-length-terms"},{"slug":"conflict-of-interest","term":"Conflict of interest","url":"https://dealroom.so/glossary/conflict-of-interest"},{"slug":"guaranty","term":"Guaranty","url":"https://dealroom.so/glossary/guaranty"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"}],"related_questions":[{"question":"How does a lender verify equity injection from a Self-Directed IRA (SDIRA) structured as a loan to the business?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-equity-injection-from-a-self-directed-ira-sdira-structured-as-a-l"},{"question":"Can I use funds from a Self-Directed IRA (SDIRA) for my equity injection if structured as a loan to the business?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-self-directed-ira-sdira-for-my-equity-injection-if-structured-as-a-"},{"question":"Can a buyer use funds from a Self-Directed IRA (SDIRA) for their equity injection if structured as a loan to the business?","url":"https://dealroom.so/sba-7a/questions/can-a-buyer-use-funds-from-a-self-directed-ira-sdira-for-their-equity-injection-if-structu"}]},"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 — Self-dealing","url":"https://dealroom.so/glossary/self-dealing","source_type":"DealRoom Data"}}