Glossary · Doing the deal
In short
A business deal between two parties who have a relationship that could potentially influence the terms of the transaction, such as family members, affiliated businesses, or common ownership.
SBA guidelines generally prohibit lending for related-party transactions unless very strict conditions are met, as they do not typically represent fair market value. If you are attempting to buy a business from a family member or an entity you already control, expect significant scrutiny or an outright denial from SBA lenders. This rule aims to prevent fraud and ensure market-based pricing.
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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