Glossary · Doing the deal
In short
This is when a buyer takes over the seller's existing SBA loan, becoming responsible for its repayment under the original terms. It's rarely allowed by the SBA.
The SBA generally prohibits the assumption of 7(a) loans. In nearly all change-of-ownership transactions, the existing SBA loan must be paid off at closing. Don't plan on assuming a seller's SBA loan; instead, structure your deal around obtaining a new 7(a) loan to finance the acquisition.
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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