Glossary · People and paperwork
Bona fide
In short
Latin for "in good faith," meaning genuine, sincere, and without intention to deceive. It implies honesty and integrity in actions or agreements.
What it means in a deal
The SBA and your lender expect all aspects of your loan application and acquisition to be bona fide. This includes the arm's length nature of the transaction, market value of assets, and truthfulness of financial representations. Misrepresentation can lead to loan denial or recall.
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
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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