{"ok":true,"canonical_url":"https://dealroom.so/glossary/existing-debt-obligation","api_url":"https://dealroom.so/api/public/glossary/existing-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":"existing-debt-obligation","term":"Existing Debt Obligation","group":"Reading the business","definition":"These are any outstanding debts the business currently owes. You need to know if these will be paid off at closing or assumed by you.","what_it_means":"During Due diligence, get a complete list of the seller's business debts, including UCC lien filings. Determine which, if any, will be assumed as part of the Asset purchase or Stock purchase, and ensure they are accounted for in the Total project costs. Most 7(a) deals require seller debt to be paid off at closing.","url":"https://dealroom.so/glossary/existing-debt-obligation","official_sources":[],"related":[{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-purchase"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"question":"Can an SBA 7(a) loan be used to acquire an existing business with existing business debt?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-acquire-an-existing-business-with-existing-business-debt"},{"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":"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 existing personal debt?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-pay-off-existing-personal-debt"},{"question":"Can I use an SBA 7(a) loan to refinance my existing business debt?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-refinance-my-existing-business-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 — Existing Debt Obligation","url":"https://dealroom.so/glossary/existing-debt-obligation","source_type":"DealRoom Data"}}