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Glossary · Doing the deal

Assignability

In short

This refers to the legal right to transfer a contract, like a lease or a key customer agreement, from the current owner (seller) to a new owner (buyer).

What it means in a deal

When buying a business, confirm that critical contracts, especially the lease and major customer/vendor agreements, are assignable to you. If not, you'll need explicit consent from the third parties, which can be a point of negotiation or a deal breaker. Your lender will verify this during due diligence.

Official sources

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.

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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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