{"ok":true,"canonical_url":"https://dealroom.so/glossary/voluntary-workout-option","api_url":"https://dealroom.so/api/public/glossary/voluntary-workout-option","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":"voluntary-workout-option","term":"Voluntary Workout Option","group":"Doing the deal","definition":"An agreement between a borrower and lender to modify loan terms to avoid default, typically when the borrower faces financial difficulty. It's a structured path to prevent formal liquidation.","what_it_means":"If your business hits a rough patch and you anticipate difficulty making loan payments, a voluntary workout option allows you to proactively negotiate with your lender. This could involve revised payment schedules, interest-only periods, or other concessions, aiming to keep the business afloat and avoid the drastic step of loan default and liquidation.","url":"https://dealroom.so/glossary/voluntary-workout-option","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":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"liquidation-plan","term":"Liquidation Plan","url":"https://dealroom.so/glossary/liquidation-plan"},{"slug":"deferment-period","term":"Deferment Period","url":"https://dealroom.so/glossary/deferment-period"},{"slug":"servicing","term":"Servicing","url":"https://dealroom.so/glossary/servicing"}],"related_questions":[{"question":"When does a lender require prior SBA approval for a voluntary collateral substitution on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-does-a-lender-require-prior-sba-approval-for-a-voluntary-collateral-substitution-on-a"},{"question":"What is the role of a \"workout plan\" in the liquidation of a defaulted 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-role-of-a-workout-plan-in-the-liquidation-of-a-defaulted-7-a-loan"},{"question":"What is the SBA's expectation for a lender's 'workout plan' for a defaulted 7(a) loan prior to liquidation?","url":"https://dealroom.so/for-lenders/questions/what-is-the-sba-s-expectation-for-a-lender-s-workout-plan-for-a-defaulted-7-a-loan-prior-t"},{"question":"Does the SBA 7(a) loan program have an 'Express' option for quicker approvals?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-7-a-loan-program-have-an-express-option-for-quicker-approvals"},{"question":"Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?","url":"https://dealroom.so/for-lenders/questions/does-an-unfunded-stock-option-agreement-trigger-affiliation-for-sba-7-a-size-standard-calc"},{"question":"Is an SBA 7(a) loan a good option for someone just starting a brand-new business?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-a-good-option-for-someone-just-starting-a-brand-new-business"}]},"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 — Voluntary Workout Option","url":"https://dealroom.so/glossary/voluntary-workout-option","source_type":"DealRoom Data"}}