Glossary · People and paperwork
Legal opinion
In short
A formal letter from an attorney, often confirming specific legal matters related to the business or transaction. Lenders typically require these to confirm the deal's legality and enforceability.
What it means in a deal
Your lender will likely require legal opinions, such as confirmation that the seller has the authority to sell and that the loan documents are valid. Your attorney will review and help produce these, ensuring all legal aspects of the transaction comply with applicable laws.
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 Legal opinion
- Is "insurable interest" always a legal requirement for obtaining business life insurance?
- What if the business I'm acquiring has existing litigation or legal disputes?
- Can a lender include unapproved legal fees in a Universal Purchase Package (UPP)?
- What if the business I'm buying has existing legal disputes or pending lawsuits?
- What if the business I'm buying has existing legal disputes or pending litigation?
- What if the business I want to buy has pending litigation or unresolved legal claims?
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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