Glossary · People and paperwork
In short
A legal permission from a government authority or private entity to operate a business, practice a profession, or use intellectual property. It's crucial for legal operation and often a condition for your loan.
Before closing, you must confirm that the business holds all necessary licenses and permits, and that they are transferable to you or that you can easily obtain new ones. Your lender will require proof of proper licensing for you and the business as part of the closing process.
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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