Glossary · People and paperwork
In short
A civil lawsuit is a legal dispute between two or more parties seeking monetary damages or specific performance, not criminal penalties. Buyers must identify any ongoing or past lawsuits related to the business or seller during due diligence.
During due diligence, review any current or past civil lawsuits involving the business or its principals. Significant litigation can indicate underlying operational issues, reputational damage, or potential future liabilities. The lender will also review these as part of their underwriting process, especially if it impacts the business's financial health or your personal eligibility.
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.
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