Glossary · Doing the deal
Conversion
In short
In SBA loan terms, this often refers to converting a term loan feature, like a variable interest rate to a fixed rate. This can impact your monthly payments and financial predictability.
What it means in a deal
While less common in 7(a) acquisition loans which are typically variable, "conversion" could refer to changing certain loan terms. More broadly, it might mean converting a seller note from full standby to partial standby. Understand all options for your loan structure and how future changes might be handled.
Official sources
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.
Related terms
Defined by CapBench 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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.