Glossary · People and paperwork
Conflicts of interest
In short
A conflict of interest arises when an individual's personal interests could potentially influence their professional judgment in a transaction. The SBA prohibits these to ensure fairness.
What it means in a deal
In an SBA loan, conflicts of interest are a red flag. For example, if the seller's M&A advisor is also a lender or has a financial stake in your purchase, that's a problem. All parties must act independently and in good faith. Disclose any potential conflicts upfront to your lender.
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 Conflicts of interest
- How do potential conflicts of interest with the seller, like shared services, affect approval?
- What types of interest rates are typically available for SBA 7(a) loans?
- When does identity of interest trigger affiliation for size determination under SBA rules?
- What is the typical range of interest rates for an SBA 7(a) loan?
- What kind of interest rate options are available for an SBA 7(a) loan?
- What kind of interest rate can I expect on an SBA 7(a) loan?
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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