Glossary · People and paperwork
In short
The failure to disclose a significant fact that, if known, would have influenced a party's decision or the terms of a deal. This is serious and can invalidate agreements or lead to legal action.
If a seller fails to disclose crucial information, like a pending lawsuit or a major client loss, it's a material omission. This can impact the business valuation, the lender's underwriting decision, and your ability to operate post-closing. Your due diligence is designed to uncover these, but if one surfaces later, it could constitute fraud.
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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