Glossary · Doing the deal
Alienate the Business
In short
To alienate the business means to sell, transfer, or otherwise dispose of its assets or ownership. As a buyer, be aware of any restrictions on your future ability to do this.
What it means in a deal
Loan agreements, especially SBA 7(a) documents, often contain clauses restricting your ability to alienate the business or its core assets without lender consent. This protects the collateral. Review your loan authorization carefully to understand these limitations on future sales or significant asset transfers.
Official sources
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.
Related terms
Common questions about Alienate the Business
- Does the Small Business Administration (SBA) ever directly lend money to small businesses?
- What is the importance of a detailed business plan for an SBA 7(a) loan application, especially for new or acquiring businesses?
- Why does the SBA combine the size of related businesses when checking loan eligibility?
- Is the SBA 7(a) program widely used by small businesses?
- What is the primary purpose of the SBA 7(a) loan program for small businesses?
- What is the fundamental purpose of the SBA 7(a) loan program for small businesses?
Defined by CapBench 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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