{"ok":true,"canonical_url":"https://dealroom.so/glossary/transfer-of-ownership","api_url":"https://dealroom.so/api/public/glossary/transfer-of-ownership","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":"transfer-of-ownership","term":"Transfer of Ownership","group":"Doing the deal","definition":"The legal process of changing who holds the title or equity in a business. This is the core event of an acquisition, making you the new legal owner.","what_it_means":"This is the ultimate goal of your acquisition. For an SBA 7(a) loan, the Transfer of Ownership is formalized at closing, typically through an asset purchase agreement or stock purchase agreement. Ensure all necessary legal documents, such as UCC filings or deeds, are properly executed and recorded to secure your interest and the lender's lien position.","url":"https://dealroom.so/glossary/transfer-of-ownership","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":"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":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"Can an SBA 7(a) loan cover the cost of a franchise transfer fee in an acquisition?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-franchise-transfer-fee-in-an-acquisition"},{"question":"What if a significant portion of the business's historical revenue came from a single, concentrated customer that will not transfer to the new owner?","url":"https://dealroom.so/for-lenders/questions/what-if-a-significant-portion-of-the-business-s-historical-revenue-came-from-a-single-conc"},{"question":"How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-review-franchise-agreements-for-compliance-if-there-are-unusual-clauses-r"},{"question":"How does the SBA handle a seller's retained ownership in a change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-handle-a-seller-s-retained-ownership-in-a-change-of-ownership-transaction"},{"question":"How does the SBA handle a seller's retained ownership in a 7(a) change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-handle-a-seller-s-retained-ownership-in-a-7-a-change-of-ownership-transac"},{"question":"Do all owners of an acquiring business, regardless of ownership percentage, need to provide a personal guaranty?","url":"https://dealroom.so/sba-7a/questions/do-all-owners-of-an-acquiring-business-regardless-of-ownership-percentage-need-to-provide-"}]},"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 — Transfer of Ownership","url":"https://dealroom.so/glossary/transfer-of-ownership","source_type":"DealRoom Data"}}