Glossary · People and paperwork
In short
This is a financial document containing false or misleading information, often used to inflate a business's value or performance. Relying on one can lead to buying a business worth less than you paid, and it's a crime.
Lenders require accurate financial statements to assess repayment capacity. If a seller provides fraudulent statements, it can invalidate the loan approval or lead to criminal charges. Always verify financial data with IRS transcripts (4506-T) and engage a qualified accountant for thorough due diligence.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day