Glossary · People and paperwork
Judgment
In short
A formal court decision stating one party owes another money or has violated a contract. For a buyer, this is a red flag on a seller's credit or the business's past legal issues.
What it means in a deal
Lenders check for judgments against the seller and the business, as these indicate financial instability or unresolved legal problems. You should find out if any judgments exist during due diligence and understand their cause and resolution to assess risk.
Official sources
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 Judgment
- Does having a recent civil judgment against me affect my SBA 7(a) loan eligibility?
- What if my personal credit report shows a judgment that has been satisfied or paid off?
- Will a past tax lien or judgment on my credit report prevent SBA 7(a) loan approval?
- Does a past civil lawsuit or judgment, not criminal, affect my eligibility for an SBA 7(a) loan?
- Will an outstanding personal judgment (e.g., from a civil lawsuit) prevent me from getting an SBA 7(a) loan?
- Will a satisfied judgment on my personal credit report, even if paid, negatively impact my SBA 7(a) loan approval?
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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