Glossary · People and paperwork
In short
A formal court decision stating one party owes another money or has violated a contract. For a buyer, this is a red flag on a seller's credit or the business's past legal issues.
Lenders check for judgments against the seller and the business, as these indicate financial instability or unresolved legal problems. You should find out if any judgments exist during due diligence and understand their cause and resolution to assess risk.
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
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