Glossary · People and paperwork
In short
This arises when a person's private interests could improperly influence their official duties or decisions. In a deal, it can affect fairness and transparency.
Lenders and the SBA scrutinize relationships between the buyer, seller, and any involved parties to ensure arm's length transactions. Undisclosed conflicts, such as a seller's family member being your business broker, can jeopardize loan approval. Full transparency is key.
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.
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