Glossary · Doing the deal
In short
This is when you buy a business from a close family member. The SBA has specific rules to ensure these deals are legitimate and not just a way to get cheap financing.
The SBA views family member transactions as potentially not "arms-length" and requires additional scrutiny. The seller cannot remain with the business in any capacity for at least 12 months post-closing to avoid affiliation concerns, and the transaction must be clearly structured as a true change of ownership.
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