{"ok":true,"canonical_url":"https://dealroom.so/glossary/debt-restructuring","api_url":"https://dealroom.so/api/public/glossary/debt-restructuring","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-restructuring","term":"Debt restructuring","group":"The loan itself","definition":"This is changing the terms of an existing debt, like reducing payments or extending the loan period. Buyers care because it affects the business's cash flow and its ability to cover new loan payments.","what_it_means":"If the business you're buying has existing debt, you need to understand its current terms. Debt restructuring might be a way to improve cash flow post-acquisition, but it's often a sign of past financial distress. Your lender will scrutinize any existing debt and how it impacts the business's ability to service new SBA debt.","url":"https://dealroom.so/glossary/debt-restructuring","official_sources":[],"related":[{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"},{"slug":"global-debt-service-capacity","term":"Global debt service capacity","url":"https://dealroom.so/glossary/global-debt-service-capacity"},{"slug":"p-l","term":"P&L","url":"https://dealroom.so/glossary/p-l"}],"related_questions":[{"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"},{"question":"What is the debt-to-worth ratio requirement for a $0-down partner buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-debt-to-worth-ratio-requirement-for-a-0-down-partner-buyout"}]},"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 restructuring","url":"https://dealroom.so/glossary/debt-restructuring","source_type":"DealRoom Data"}}