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Glossary · People and paperwork

Nondisclosure

In short

Failure to reveal important information that could influence a decision or transaction. In a business sale, this can be as damaging as outright misrepresentation.

What it means in a deal

The seller is obligated to disclose all material facts about the business. If they intentionally withhold crucial information during due diligence, it could be grounds to renegotiate or even terminate the deal. Protect yourself with thorough due diligence and clear representations in the purchase agreement.

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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