{"ok":true,"canonical_url":"https://dealroom.so/glossary/debt","api_url":"https://dealroom.so/api/public/glossary/debt","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":"debt","term":"Debt","group":"Reading the business","definition":"Debt is money owed or due to another party, typically repaid with interest over time. It's a major component of a business's liabilities and impacts its financial health.","what_it_means":"When buying a business, you'll inherit or refinance its existing debt, and you'll incur new debt with your SBA loan. Understand all current debt obligations, their terms, and how they impact the business's cash flow. Lenders scrutinize debt to assess repayment capacity and overall leverage.","url":"https://dealroom.so/glossary/debt","official_sources":[],"related":[{"slug":"financial-obligation","term":"Financial obligation","url":"https://dealroom.so/glossary/financial-obligation"},{"slug":"liability","term":"Liability","url":"https://dealroom.so/glossary/liability"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"overall-leverage","term":"Overall Leverage","url":"https://dealroom.so/glossary/overall-leverage"}],"related_questions":[{"question":"Can I use an SBA 7(a) loan for debt consolidation of existing business debts?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-debt-consolidation-of-existing-business-debts"},{"question":"How is prior owner debt converted to equity treated for injection purposes?","url":"https://dealroom.so/for-lenders/questions/how-is-prior-owner-debt-converted-to-equity-treated-for-injection-purposes"},{"question":"Can I use an SBA 7(a) loan to refinance existing business debt?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-refinance-existing-business-debt"},{"question":"Can an SBA 7(a) loan be used to refinance existing business debt?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-refinance-existing-business-debt"},{"question":"Can I use an SBA 7(a) loan to pay off personal debt?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-pay-off-personal-debt"},{"question":"Does the SBA require a specific debt service coverage ratio (DSCR) for approval?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-a-specific-debt-service-coverage-ratio-dscr-for-approval"}]},"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 — Debt","url":"https://dealroom.so/glossary/debt","source_type":"DealRoom Data"}}