Glossary · The loan itself
In short
A traditional bank loan, not backed by the SBA, typically with a shorter repayment period than an SBA loan. Buyer cares because these often have stricter collateral requirements and less flexible terms than a 7(a).
While not an SBA 7(a) loan, you might consider a short-term conventional loan for specific purposes, like smaller working capital needs or if you don't qualify for SBA financing. However, conventional loans usually require more robust collateral or a larger down payment, making them less common for small business acquisitions unless you have significant personal assets.
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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