{"ok":true,"canonical_url":"https://dealroom.so/glossary/unexercised-option","api_url":"https://dealroom.so/api/public/glossary/unexercised-option","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":"unexercised-option","term":"Unexercised option","group":"Reading the business","definition":"A right, but not an obligation, to buy or sell something (like shares or property) at a predetermined price, which has not yet been used. These can represent potential future claims on the business.","what_it_means":"When reviewing a business, look for unexercised options in the seller's documentation, especially regarding equity or real estate. These could dilute your ownership or create future liabilities if exercised. Understand their terms and impact on your deal structure.","url":"https://dealroom.so/glossary/unexercised-option","official_sources":[],"related":[{"slug":"beneficial-interest","term":"Beneficial interest","url":"https://dealroom.so/glossary/beneficial-interest"},{"slug":"business-acquisition","term":"Business acquisition","url":"https://dealroom.so/glossary/business-acquisition"},{"slug":"trust-agreement","term":"Trust agreement","url":"https://dealroom.so/glossary/trust-agreement"}],"related_questions":[{"question":"When does an unexercised option to acquire ownership in a business trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-an-unexercised-option-to-acquire-ownership-in-a-business-trigger-affiliation-for"},{"question":"Does the SBA 7(a) loan program have an 'Express' option for quicker approvals?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-loan-program-have-an-express-option-for-quicker-approvals"},{"question":"Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?","url":"https://dealroom.so/for-lenders/questions/does-an-unfunded-stock-option-agreement-trigger-affiliation-for-sba-7-a-size-standard-calc"},{"question":"Is an SBA 7(a) loan a good option for someone just starting a brand-new business?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-a-good-option-for-someone-just-starting-a-brand-new-business"},{"question":"Can a lender change the base rate option for a variable rate 7(a) loan after closing?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-change-the-base-rate-option-for-a-variable-rate-7-a-loan-after-closing"},{"question":"Is an SBA 7(a) loan an option if I want to buy out a business partner's share?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-an-option-if-i-want-to-buy-out-a-business-partner-s-share"}]},"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 — Unexercised option","url":"https://dealroom.so/glossary/unexercised-option","source_type":"DealRoom Data"}}