{"ok":true,"canonical_url":"https://dealroom.so/glossary/warrant","api_url":"https://dealroom.so/api/public/glossary/warrant","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":"warrant","term":"Warrant","group":"Your money in the deal","definition":"A security that gives the holder the right to purchase the underlying stock of a company at a fixed price and time, similar to an option but typically issued by the company itself.","what_it_means":"If the business you're acquiring has outstanding warrants, these represent a potential future dilution of equity if exercised. In a stock purchase, you must account for these. Ensure the purchase agreement clarifies how any existing warrants will be treated, whether they are canceled, exercised, or assumed.","url":"https://dealroom.so/glossary/warrant","official_sources":[],"related":[{"slug":"convertible-note","term":"Convertible Note","url":"https://dealroom.so/glossary/convertible-note"},{"slug":"stock-option-agreement","term":"Stock Option Agreement","url":"https://dealroom.so/glossary/stock-option-agreement"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"How does ownership of options or warrants affect affiliation determination for SBA size standards?","url":"https://dealroom.so/for-lenders/questions/how-does-ownership-of-options-or-warrants-affect-affiliation-determination-for-sba-size-st"},{"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"}]},"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 — Warrant","url":"https://dealroom.so/glossary/warrant","source_type":"DealRoom Data"}}