Glossary · People and paperwork
In short
The legal duty to reveal all relevant facts and information pertinent to a transaction. Failure to disclose can lead to severe consequences for the seller, lender, and even the buyer.
Both the seller and buyer have disclosure obligations throughout the 7(a) loan process. The seller must disclose all Material information about the business, including liabilities or legal issues. As a buyer, you must be transparent about your financial situation and any potential conflicts of interest. Intentional Misrepresentation or Material Omission can result in fraud allegations.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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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