Glossary · People and paperwork
Trust
In short
A legal arrangement where assets are held by one party (the trustee) for the benefit of another (the beneficiary). For a buyer, this can complicate ownership and control in a business acquisition.
What it means in a deal
If the seller's business assets or ownership are held in a trust, you need to understand the trust's terms. Ensure the trustee has the authority to sell and that the assets are transferred cleanly. This is crucial for verifying clear title and avoiding future disputes.
Related terms
Common questions about Trust
- For a business owned by a trust, what citizenship and residency requirements apply to the trustee for 7(a) eligibility?
- Can a business owned by a trust be eligible for a 7(a) loan if the trustee is a foreign national?
- How does the SBA determine affiliation between businesses controlled by a common trust?
- When does common ownership through a trust or estate create affiliation for size purposes?
- Can I use inherited money that is currently in a trust to fund my equity injection?
- Can a trust or an estate be an eligible borrower for an SBA 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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