{"ok":true,"canonical_url":"https://dealroom.so/glossary/debt-refinancing","api_url":"https://dealroom.so/api/public/glossary/debt-refinancing","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-refinancing","term":"Debt refinancing","group":"The loan itself","definition":"This involves taking out a new loan to pay off existing business debt, usually to get better terms, lower interest rates, or consolidate multiple debts. An SBA 7(a) loan can be used for this if it provides a substantial benefit.","what_it_means":"If the target business has existing debt, you might use a 7(a) loan to refinance it as part of the acquisition. The SBA requires that this refinancing offers a \"substantial benefit\" to the business, like reducing monthly payments by at least 10%. Work with your lender to ensure the terms meet this requirement.","url":"https://dealroom.so/glossary/debt-refinancing","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":"substantial-benefit","term":"Substantial benefit","url":"https://dealroom.so/glossary/substantial-benefit"},{"slug":"business-debt-refinancing","term":"Business debt refinancing","url":"https://dealroom.so/glossary/business-debt-refinancing"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"total-project-cost","term":"Total project cost","url":"https://dealroom.so/glossary/total-project-cost"}],"related_questions":[{"question":"Is it possible to use an SBA 7(a) loan for business debt refinancing?","url":"https://dealroom.so/sba-loans/basics/is-it-possible-to-use-an-sba-7-a-loan-for-business-debt-refinancing"},{"question":"What conditions must be met to use an SBA 7(a) loan for refinancing existing business debt?","url":"https://dealroom.so/sba-loans/basics/what-conditions-must-be-met-to-use-an-sba-7-a-loan-for-refinancing-existing-business-debt"},{"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 refinancing","url":"https://dealroom.so/glossary/debt-refinancing","source_type":"DealRoom Data"}}