Glossary · People and paperwork
In short
These are employees whose unique skills, knowledge, or relationships are critical to the business's success and continued operation. Losing them can significantly impact value.
Identify key employees early in due diligence. Understand their roles, compensation, and retention plans. You'll want to secure their commitment with new employment agreements or incentives to ensure a smooth transition and maintain business continuity post-acquisition. The SBA often requires life insurance on these individuals.
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.
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