Glossary · People and paperwork
Trust Document
In short
This legal document establishes a trust, outlining its purpose, assets, and beneficiaries. If you or the seller use a trust, the lender needs to understand it.
What it means in a deal
If you or any guarantor holds significant assets in a trust, or if the business itself is owned by a trust, the lender will require a copy of the trust document. They need to ensure the trust's terms allow for the necessary personal guarantees and pledging of assets as collateral, and that there are no adverse liens.
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 Document
- How does the SBA determine affiliation between businesses controlled by a common trust?
- What is an SBA *loan authorization* document, and why is it important?
- When does common ownership through a trust or estate create affiliation for size purposes?
- What is the specific SBA policy document that addresses collateral life insurance requirements?
- What information is required to document the purchase price allocation for a business acquisition?
- Can I use inherited money that is currently in a trust to fund my equity injection?
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.