Glossary · People and paperwork
Governing Document
In short
This is the legal paperwork (e.g., operating agreement, bylaws, trust agreement) that defines how a business or entity is structured and managed. Lenders review it to understand ownership and authority.
What it means in a deal
For any entity involved in the loan (your buying entity, the seller's entity if it's a stock purchase, or any trust), the lender will require its Governing Document. This confirms who has authority to sign for the business, the ownership structure, and any restrictions. Ensure these are up-to-date and accurate before closing.
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 Governing Document
- What is an SBA *loan authorization* document, and why is it important?
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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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