Glossary · Doing the deal
In short
This is a legal document where a new party agrees to take on the financial obligations of an existing loan. In an acquisition, you might assume seller debt, though SBA 7(a) loans are generally not assumable.
While SBA 7(a) loans are generally not assumable by a new buyer, an assumption agreement could apply to other existing business debts you take on. If you're assuming any non-SBA debt from the seller, your lender will scrutinize these terms as they impact your repayment capacity and total leverage.
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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