{"ok":true,"canonical_url":"https://dealroom.so/glossary/refinancing-debt","api_url":"https://dealroom.so/api/public/glossary/refinancing-debt","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":"refinancing-debt","term":"Refinancing debt","group":"The loan itself","definition":"Using a new loan to pay off existing business debt, often to get better terms, lower payments, or consolidate multiple debts.","what_it_means":"The SBA 7(a) loan can be used to refinance existing business debt as part of an acquisition, provided it improves the business's cash flow or structure. However, the debt must meet SBA eligibility rules, such as being for an eligible purpose and not already government-guaranteed. Check eligibility carefully.","url":"https://dealroom.so/glossary/refinancing-debt","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"},{"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"}],"related":[{"slug":"refinancing","term":"Refinancing","url":"https://dealroom.so/glossary/refinancing"},{"slug":"business-debt-refinancing","term":"Business debt refinancing","url":"https://dealroom.so/glossary/business-debt-refinancing"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"cash-flow","term":"Cash flow","url":"https://dealroom.so/glossary/cash-flow"}],"related_questions":[{"question":"Is it possible to use an SBA 7(a) loan for business debt refinancing?","url":"https://dealroom.so/sba-loans/basics/is-it-possible-to-use-an-sba-7-a-loan-for-business-debt-refinancing"},{"question":"What conditions must be met to use an SBA 7(a) loan for refinancing existing business debt?","url":"https://dealroom.so/sba-loans/basics/what-conditions-must-be-met-to-use-an-sba-7-a-loan-for-refinancing-existing-business-debt"},{"question":"Can I use an SBA 7(a) loan for debt consolidation of existing business debts?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-debt-consolidation-of-existing-business-debts"},{"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"}]},"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 — Refinancing debt","url":"https://dealroom.so/glossary/refinancing-debt","source_type":"DealRoom Data"}}