{"ok":true,"canonical_url":"https://dealroom.so/glossary/workout-arrangement","api_url":"https://dealroom.so/api/public/glossary/workout-arrangement","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-arrangement","term":"Workout arrangement","group":"The loan itself","definition":"A new agreement between a borrower and lender to restructure loan terms when the borrower cannot meet original payment obligations. This is a measure to avoid default and potential liquidation.","what_it_means":"If you encounter financial difficulties after acquiring the business, a workout arrangement (such as a deferment or modified payment plan) might be negotiated with your lender. The objective is to keep the business viable and prevent a loan default, which would trigger the SBA guaranty and potential personal recourse.","url":"https://dealroom.so/glossary/workout-arrangement","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":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"deferred-payment","term":"Deferred payment","url":"https://dealroom.so/glossary/deferred-payment"},{"slug":"liquidation-plan","term":"Liquidation Plan","url":"https://dealroom.so/glossary/liquidation-plan"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"}],"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 arrangement","url":"https://dealroom.so/glossary/workout-arrangement","source_type":"DealRoom Data"}}