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Glossary · People and paperwork

Irrevocable

In short

Something that is irrevocable cannot be reversed, canceled, or changed. This is critical for commitments like letters of credit or gifted funds, assuring the SBA that funds or obligations are permanent.

What it means in a deal

An irrevocable commitment means it's final and binding. For example, if you receive gifted equity, the gift must be irrevocable, preventing the giver from demanding it back. The SBA needs assurance that the capital is permanently injected into the business and not subject to recall.

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.

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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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