{"ok":true,"canonical_url":"https://dealroom.so/glossary/workout","api_url":"https://dealroom.so/api/public/glossary/workout","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":"workout","term":"Workout","group":"Doing the deal","definition":"An agreement between a borrower and lender to restructure loan terms to avoid default or foreclosure when the borrower is struggling. This often involves new payment schedules.","what_it_means":"If a business you're buying has existing debt that the seller is struggling to manage, a workout might be in progress or considered. Understand if any seller debt is being restructured, as this indicates past financial issues. For your own SBA loan, a workout is a last resort to avoid liquidation.","url":"https://dealroom.so/glossary/workout","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":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"foreclosure","term":"Foreclosure","url":"https://dealroom.so/glossary/foreclosure"},{"slug":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"}],"related_questions":[{"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"}]},"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 — Workout","url":"https://dealroom.so/glossary/workout","source_type":"DealRoom Data"}}