Glossary · The loan itself
In short
This involves replacing a business's current loans with a new one, often to get better terms or consolidate multiple debts. It's a common use of a 7(a) loan in an acquisition.
When buying a business, you can often use a 7(a) loan to refinance some or all of the seller's existing business debt, provided it meets SBA eligibility criteria. This can simplify the capital structure and potentially improve cash flow with a longer term and lower payments. Your lender will scrutinize the debt for eligibility.
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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