{"ok":true,"canonical_url":"https://dealroom.so/glossary/payoff","api_url":"https://dealroom.so/api/public/glossary/payoff","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":"payoff","term":"Payoff","group":"The loan itself","definition":"The total amount required to fully satisfy an existing loan or debt. When buying a business, you'll ensure all existing business debts are paid off at closing.","what_it_means":"At closing, any existing business debt you are not assuming must be paid off. This includes any previous SBA loans, lines of credit, or other secured debt. Your closing attorney will manage obtaining payoff letters from existing lenders to ensure clear title to assets and prevent future claims.","url":"https://dealroom.so/glossary/payoff","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":"refinancing","term":"Refinancing","url":"https://dealroom.so/glossary/refinancing"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[]},"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 — Payoff","url":"https://dealroom.so/glossary/payoff","source_type":"DealRoom Data"}}