Glossary · Doing the deal
In short
This is when you, the buyer, take over an existing debt obligation from the seller. It means you become responsible for paying off that specific loan or liability going forward.
While common in some M&A, SBA 7(a) loans generally fund new business debt, not the assumption of the seller's existing business loans. If the seller has debt you want to keep, it's typically restructured or paid off at closing with the new loan proceeds, not assumed by you as part of the 7(a) financing.
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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