Glossary · People and paperwork
In short
Omission of material facts is failing to disclose important information that would influence a decision, even if no false statements were made. This is as serious as outright lying in a business transaction.
If a seller "forgets" to mention a major client is leaving, that's an Omission of material facts. For buyers, not disclosing a past bankruptcy is also an omission. Both can be grounds for legal action and, for SBA loans, will result in denial or even a Call of the guaranty if discovered later.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
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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