{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-assumption","api_url":"https://dealroom.so/api/public/glossary/loan-assumption","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":"loan-assumption","term":"Loan assumption","group":"Doing the deal","definition":"A buyer taking over the existing loan obligations of a business, rather than securing new financing. While rare with SBA loans, it can sometimes happen under specific circumstances.","what_it_means":"SBA 7(a) loans are generally not assumable by a new buyer. The SBA requires the new owner to qualify for their own loan, making loan assumption an exception rather than the rule. Don't plan on assuming a seller's SBA loan; instead, budget for obtaining your own new 7(a) financing.","url":"https://dealroom.so/glossary/loan-assumption","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":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"slug":"refinancing","term":"Refinancing","url":"https://dealroom.so/glossary/refinancing"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"}],"related_questions":[{"question":"Can a buyer's assumption of existing business debt count as part of the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-buyer-s-assumption-of-existing-business-debt-count-as-part-of-the-equity-injection"},{"question":"Does an SBA loan have better terms than a regular bank loan?","url":"https://dealroom.so/sba-loans/basics/does-an-sba-loan-have-better-terms-than-a-regular-bank-loan"},{"question":"What is the minimum loan amount for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-minimum-loan-amount-for-an-sba-7-a-loan"},{"question":"What is the maximum loan amount for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-maximum-loan-amount-for-an-sba-7-a-loan"},{"question":"Is there a typical average loan size for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-there-a-typical-average-loan-size-for-an-sba-7-a-loan"},{"question":"How is the maximum loan amount for an SBA 7(a) loan determined?","url":"https://dealroom.so/sba-loans/basics/how-is-the-maximum-loan-amount-for-an-sba-7-a-loan-determined"}]},"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 — Loan assumption","url":"https://dealroom.so/glossary/loan-assumption","source_type":"DealRoom Data"}}