Glossary · People and paperwork
Escrow agents
In short
A neutral third party who holds funds and documents related to the transaction until all conditions of the deal are met. They ensure a fair and secure transfer for both buyer and seller.
What it means in a deal
In an SBA 7(a) acquisition, the escrow agent might hold your equity injection, the lender's loan proceeds, and the seller note funds. They disburse these funds only when all closing conditions, including lien filings and title transfers, are satisfied. Verify their reputation and experience with business acquisitions.
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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