Glossary · People and paperwork
In short
Material information refers to facts significant enough to influence a reasonable person's decision. In a business acquisition, this includes anything that would impact your decision to purchase or the lender's decision to fund.
Both buyers and sellers have an obligation to disclose Material information during due diligence. This includes financial performance, legal issues, or operational problems. Failing to disclose it can lead to claims of Intentional misrepresentation or Omission of material facts, jeopardizing the deal or causing post-closing disputes.
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.
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