Glossary · People and paperwork
In short
A business structure recognized by law (e.g., LLC, Corporation, Partnership) that can enter into contracts, own assets, and incur liabilities independently. You'll form one to acquire the business.
You will typically acquire a business using a new legal entity (an LLC or Corporation) to protect your personal assets from business liabilities. This entity will be the borrower on the SBA loan. Consult with your attorney to choose the best structure for your situation.
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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