Glossary · People and paperwork
In short
This is failing to disclose important information, even if unintentional, that could influence a lender's decision or the deal's terms. It's serious because it can lead to loan denial or even fraud allegations.
During due diligence and the loan application process, you and the seller must provide all material information. Deliberately withholding or inadvertently overlooking critical details about the business's finances or legal issues can be considered an omission of fact. Ensure all parties fully disclose everything.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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