Glossary · Doing the deal
In short
The legal structure you create (e.g., LLC, Corporation) to purchase and operate the business. This entity will be the borrower on your SBA loan.
For an asset purchase, you'll almost always form a new business entity to acquire the assets of the existing business. This protects your personal assets and simplifies the transaction. This entity will be the legal borrower and will sign all loan documents, including the note and security agreements, and operate the business post-acquisition.
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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