Glossary · Doing the deal
In short
This means the buyer takes over the seller's existing loan obligations, becoming responsible for its repayment under the original terms. It's common in real estate, but rare for SBA loans.
For SBA 7(a) loans, assuming an existing loan is generally not permitted. The SBA requires a new loan application and underwriting process for each change of ownership. You will almost always apply for a new 7(a) loan to finance your acquisition, not assume the seller's.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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