Glossary · The loan itself
In short
Combining multiple existing business debts into a single new loan, often to simplify payments or secure a lower interest rate.
An SBA 7(a) loan can be used for business debt refinancing under specific conditions, primarily if the new loan significantly improves the business's cash flow or operational efficiency. You'll need to demonstrate how consolidating existing business debt into the 7(a) loan benefits the business, not just the seller's personal finances.
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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