Glossary · People and paperwork
In short
A legal document used when you buy the ownership shares (stock) of a corporation, meaning you acquire the entire existing legal entity, including its assets and liabilities.
With a stock purchase, you inherit the seller's entity, including all its past liabilities. This means more rigorous Due diligence is required to uncover potential hidden issues. The SBA loan can finance a stock purchase, but lenders often prefer an Asset purchase for its cleaner liability profile.
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
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