Glossary · The loan itself
In short
Using a new loan to pay off existing business debt, often to get better terms, lower payments, or consolidate multiple debts.
The SBA 7(a) loan can be used to refinance existing business debt as part of an acquisition, provided it improves the business's cash flow or structure. However, the debt must meet SBA eligibility rules, such as being for an eligible purpose and not already government-guaranteed. Check eligibility carefully.
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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