{"ok":true,"canonical_url":"https://dealroom.so/glossary/debt-obligation","api_url":"https://dealroom.so/api/public/glossary/debt-obligation","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-obligation","term":"Debt obligation","group":"The loan itself","definition":"The legal duty to repay borrowed money. This includes the principal and interest on all loans, both business and personal.","what_it_means":"Lenders evaluate all your existing debt obligations, personal and business, to assess your global cash flow and overall repayment capacity. Your personal financial statement and credit report will detail these. High existing debt can impact your eligibility for a new 7(a) loan, as it reduces your debt service coverage ratio.","url":"https://dealroom.so/glossary/debt-obligation","official_sources":[{"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":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"},{"slug":"credit-report","term":"Credit report","url":"https://dealroom.so/glossary/credit-report"},{"slug":"global-cash-flow","term":"Global cash flow","url":"https://dealroom.so/glossary/global-cash-flow"}],"related_questions":[{"question":"What happens to my personal guaranty obligation if I later sell the business?","url":"https://dealroom.so/sba-7a/questions/what-happens-to-my-personal-guaranty-obligation-if-i-later-sell-the-business"},{"question":"If I sell the business, does the new owner inherit the prepayment penalty obligation for the SBA loan?","url":"https://dealroom.so/sba-7a/questions/if-i-sell-the-business-does-the-new-owner-inherit-the-prepayment-penalty-obligation-for-th"},{"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"}]},"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 obligation","url":"https://dealroom.so/glossary/debt-obligation","source_type":"DealRoom Data"}}