Glossary · Doing the deal
In short
A condition precedent is a requirement that must be met before your loan funds can be released. Failing to satisfy these conditions can delay or even kill your deal.
Your SBA Loan Authorization and loan agreement will list various conditions precedent, such as providing proof of insurance, signing a lease, or forming your new business entity. You need to track these and ensure they are all fulfilled by closing. Work with your lender and legal counsel to tick off every item well before the scheduled funding date.
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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