Glossary · Doing the deal
In short
This is the legal structure (LLC, Corporation) you set up to purchase and own the business. It’s critical because it dictates liability and tax treatment.
Your acquiring entity will be the borrower on the SBA 7(a) loan. The SBA requires all owners of 20% or more of this entity to provide a Personal Guarantee. Carefully choose your entity type early with legal and tax advisors to avoid issues during closing.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day