Glossary · The loan itself
In short
An EPC is a business that doesn't operate a trade but leases its assets, often real estate, to an operating company. The SBA allows these structures to separate property ownership from business operations.
In an SBA 7(a) deal, the EPC (often the buyer's new entity) might own the real estate and lease it to the operating business. The EPC must be a co-borrower on the loan, and both entities' financials are reviewed for eligibility and repayment capacity. Understand this structure as it affects your legal entities and loan documents.
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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