Glossary · The loan itself
In short
Using a new loan to pay off one or more existing business debts. An SBA 7(a) loan can be used for this purpose, often to consolidate or extend repayment terms.
When acquiring a business, you might use a 7(a) loan to pay off some of the target company's existing debt as part of the total project costs. This can simplify the capital structure and potentially improve cash flow with longer repayment terms. Ensure the debt is eligible for refinancing.
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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