Glossary · People and paperwork
In short
Adhering to all relevant laws, regulations, and industry standards applicable to a business's operations. Non-compliance can lead to severe penalties.
During due diligence, you must verify the target business's regulatory compliance. Unaddressed compliance issues can result in fines, legal action, or even business closure, jeopardizing your investment and repayment capacity. Ensure all permits, licenses, and industry-specific regulations are current and met.
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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