Glossary · People and paperwork
Proper Permitting
In short
Ensures the business has all necessary licenses and permits to operate legally. Without them, you risk fines or business closure.
What it means in a deal
Before closing, verify the seller holds all required local, state, and federal permits for their specific industry and location. A missing or expired permit can delay your loan or invalidate the deal. Make sure these are transferable or easily re-obtainable in your name.
Related terms
Common questions about Proper Permitting
- How does a lender ensure proper collateral assignment of life insurance on multiple key principals?
- What are a lender's responsibilities concerning the proper use of 7(a) loan proceeds by the borrower?
- What is the requirement for a lender to ensure proper maintenance of life insurance collateral on key principals?
- What documentation is specifically required for a lender to demonstrate proper subordination of a seller note on full standby?
- How does a lender confirm proper U.S. residency status for an owner holding a Green Card for a 7(a) loan?
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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