Glossary · People and paperwork
Formal Amendment
In short
A formal amendment is a written change or addition to a legal document, such as a loan agreement or purchase agreement. It legally modifies the original terms.
What it means in a deal
During the deal process, if any terms in the LOI, purchase agreement, or SBA Loan Authorization need to change, a formal amendment is required. Ensure all parties sign and date these amendments to legally incorporate the revisions and avoid future disputes.
Related terms
Common questions about Formal Amendment
- Under what specific circumstances is a lender permitted to make minor modifications to the 7(a) loan authorization without requesting a formal amendment from SBA?
- How does a lender process a 7(a) loan authorization amendment in the E-Tran system?
- Does the SBA require me to create a formal business plan to apply?
- How does a lender process a 7(a) loan authorization amendment in the E-Tran system after initial approval?
- Do I need a formal business plan to apply for an SBA 7(a) loan?
- What specific due diligence is required for an unlisted franchise agreement lacking SBA formal review?
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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