{"ok":true,"canonical_url":"https://dealroom.so/glossary/assuming-the-loan","api_url":"https://dealroom.so/api/public/glossary/assuming-the-loan","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"assuming-the-loan","term":"Assuming the loan","group":"Doing the deal","definition":"This means the buyer takes over the seller's existing loan obligations, becoming responsible for its repayment under the original terms. It's common in real estate, but rare for SBA loans.","what_it_means":"For SBA 7(a) loans, assuming an existing loan is generally not permitted. The SBA requires a new loan application and underwriting process for each change of ownership. You will almost always apply for a new 7(a) loan to finance your acquisition, not assume the seller's.","url":"https://dealroom.so/glossary/assuming-the-loan","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"change-of-ownership","term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"}],"related_questions":[{"question":"What is the maximum percentage of the purchase price an SBA 7(a) loan can finance, assuming minimum equity and seller standby?","url":"https://dealroom.so/sba-7a/questions/what-is-the-maximum-percentage-of-the-purchase-price-an-sba-7-a-loan-can-finance-assuming-"},{"question":"Does the sunset of SBSS affect the underwriting requirements for standard 7(a) loans above the Small Loan threshold?","url":"https://dealroom.so/for-lenders/questions/does-the-sunset-of-sbss-affect-the-underwriting-requirements-for-standard-7-a-loans-above-"},{"question":"Does the SBA check for past defaults on federal debts, like student loans or prior SBA loans?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-check-for-past-defaults-on-federal-debts-like-student-loans-or-prior-sba-loan"},{"question":"Is the SBA 7(a) loan program only for very large loans, not small ones?","url":"https://dealroom.so/sba-loans/basics/is-the-sba-7-a-loan-program-only-for-very-large-loans-not-small-ones"},{"question":"What specific documentation is now required in the loan file for 7(a) Small Loans following the sunset of the SBSS score?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-now-required-in-the-loan-file-for-7-a-small-loans-following"},{"question":"Does the SBA dictate all loan terms, like interest rates and fees, for 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-dictate-all-loan-terms-like-interest-rates-and-fees-for-7-a-loans"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Assuming the loan","url":"https://dealroom.so/glossary/assuming-the-loan","source_type":"DealRoom Data"}}