{"ok":true,"canonical_url":"https://dealroom.so/glossary/payoff-letter","api_url":"https://dealroom.so/api/public/glossary/payoff-letter","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-letter","term":"Payoff Letter","group":"Doing the deal","definition":"A payoff letter is a formal document from a lender stating the exact amount needed to fully repay a loan on a specific date. This is critical for closing an acquisition.","what_it_means":"When buying a business with existing debt, you'll need payoff letters for all outstanding loans that the seller is obligated to clear. Your closing attorney uses these letters to ensure all seller-side liens are satisfied and released at closing, allowing for a clean transfer of assets.","url":"https://dealroom.so/glossary/payoff-letter","official_sources":[],"related":[{"slug":"lien-release","term":"Lien Release","url":"https://dealroom.so/glossary/lien-release"},{"slug":"full-release-of-personal-guaranty","term":"Full Release of Personal Guaranty","url":"https://dealroom.so/glossary/full-release-of-personal-guaranty"},{"slug":"ucc-lien","term":"UCC lien","url":"https://dealroom.so/glossary/ucc-lien"}],"related_questions":[{"question":"Does a gift letter need to be from a U.S. citizen or permanent resident for equity injection?","url":"https://dealroom.so/sba-7a/questions/does-a-gift-letter-need-to-be-from-a-u-s-citizen-or-permanent-resident-for-equity-injectio"},{"question":"Are there specific requirements for a gift letter if funds are received from multiple immediate family members for the down payment?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-requirements-for-a-gift-letter-if-funds-are-received-from-multiple-imme"}]},"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 Letter","url":"https://dealroom.so/glossary/payoff-letter","source_type":"DealRoom Data"}}