Glossary · People and paperwork
Trust agreement
In short
A legal document that establishes a trust, outlining its terms, the assets it holds, the beneficiaries, and the powers and duties of the trustee. This document determines who controls and benefits from trust assets.
What it means in a deal
If a trust is involved in the ownership structure of the business you're buying, your lender will require a copy of the trust agreement. They'll review it to identify the grantor, trustees, and beneficiaries to determine who needs to sign loan documents and personal guarantees.
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 Trust agreement
- 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?
- Can a trust or estate be an eligible personal guarantor for an SBA 7(a) loan?
- How does a lender determine affiliation for SBA size purposes when a business is controlled by a trust or estate?
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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