Glossary · People and paperwork
Material information
In short
Material information refers to facts significant enough to influence a reasonable person's decision. In a business acquisition, this includes anything that would impact your decision to purchase or the lender's decision to fund.
What it means in a deal
Both buyers and sellers have an obligation to disclose Material information during due diligence. This includes financial performance, legal issues, or operational problems. Failing to disclose it can lead to claims of Intentional misrepresentation or Omission of material facts, jeopardizing the deal or causing post-closing disputes.
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 Material information
- What critical information often missing from a Universal Purchase Package (UPP) leads to an SBA request for more information?
- Does misrepresenting financial information on the SBA application automatically kill approval?
- What are the consequences if SBA Form 1919 contains material omissions or misrepresentations?
- Can a lender approve a material change to collateral without prior SBA approval?
- What is the primary purpose of SBA Form 1919, 'Borrower Information Form'?
- Can failing to disclose information kill 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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