{"ok":true,"canonical_url":"https://dealroom.so/glossary/third-party-loan","api_url":"https://dealroom.so/api/public/glossary/third-party-loan","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":"third-party-loan","term":"Third-party loan","aka":"External loan","group":"The loan itself","definition":"This is debt from someone other than the buyer or seller, like a bank or equipment lender. When buying a business, you need to understand which existing third-party loans will be paid off or assumed.","what_it_means":"In an acquisition, existing third-party debt must be addressed. Typically, the seller pays off all business debt at closing. If you assume a loan, ensure the terms are favorable and the lender approves the change of ownership. Verify all liens are released on assets being acquired.","url":"https://dealroom.so/glossary/third-party-loan","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":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"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 third-party loan, not from the seller, count towards the minimum equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-third-party-loan-not-from-the-seller-count-towards-the-minimum-equity-injection"},{"question":"What specific language must a non-SBA third-party standby agreement include to ensure eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-language-must-a-non-sba-third-party-standby-agreement-include-to-ensure-elig"},{"question":"Can an SBA 7(a) loan finance the purchase of intellectual property rights from a third party?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-purchase-of-intellectual-property-rights-from-a-third-part"},{"question":"Can I use an SBA 7(a) loan to purchase a business from an unrelated third party?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-purchase-a-business-from-an-unrelated-third-party"},{"question":"Can a loan secured by non-business personal assets from a third party count as equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-loan-secured-by-non-business-personal-assets-from-a-third-party-count-as-equity-inje"},{"question":"How does a lender verify the full standby status of a non-SBA third-party debt?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-full-standby-status-of-a-non-sba-third-party-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 — Third-party loan","url":"https://dealroom.so/glossary/third-party-loan","source_type":"DealRoom Data"}}