Glossary · People and paperwork
Local building code
In short
Regulations setting minimum standards for construction, alteration, and maintenance of buildings in a specific jurisdiction. You care because non-compliance can lead to fines, forced renovations, or even business closure.
What it means in a deal
During due diligence, especially if acquiring real estate or significant leasehold improvements, verify the property's compliance with local building codes. An inspection can reveal violations that might require costly remediation or prevent you from obtaining necessary permits for future expansion. Ensure the seller provides any relevant permits or inspection reports.
Related terms
Common questions about Local building code
- Can I use a conditional grant from a local economic development agency as equity?
- Will outstanding state or local tax liens on the business affect SBA 7(a) loan eligibility?
- If the acquired business owns its building, can the SBA 7(a) loan include funds for expanding the existing building?
- When applying for an SBA 7(a) loan, do I contact the SBA agency or a local bank?
- How does an SBA 7(a) loan differ from a regular loan I might get from a local bank?
- How does an incorrect NAICS code on SBA Form 1919 impact 7(a) loan eligibility for a borrower?
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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