Glossary · People and paperwork
Formation Document
In short
This is the legal paperwork filed with a state to officially create a business entity, like Articles of Incorporation for a corporation or Articles of Organization for an LLC. It establishes the business's legal existence.
What it means in a deal
Your lender will require these documents for the target business to verify its legal structure and ownership. If you're forming a new entity to acquire the business, you'll need to provide its formation documents as well. Ensure they are current and accurately reflect ownership.
Related terms
Common questions about Formation Document
- What is an SBA *loan authorization* document, and why is it important?
- What is the specific SBA policy document that addresses collateral life insurance requirements?
- What information is required to document the purchase price allocation for a business acquisition?
- How does a lender document adherence to prudent lending standards in the underwriting credit memo?
- How does the buyer's responsiveness to document requests affect the SBA 7(a) application timeline?
- How should a lender document eligible liquidation expenses within the UPP for a 7(a) guaranty purchase?
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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