Glossary · The loan itself
Credit Facility
In short
A general term for a type of loan or borrowing arrangement, like a term loan or line of credit. Your SBA 7(a) loan is a form of credit facility.
What it means in a deal
For a business acquisition, your SBA 7(a) loan is a term loan, a specific type of credit facility. Sometimes, your lender might offer an additional "line of credit" as part of the overall credit facility package for working capital. Understand the specific terms and conditions of each component of the facility.
Related terms
Common questions about Credit Facility
- Can an SBA 7(a) loan be used to expand an existing business location or facility?
- Can an SBA 7(a) loan cover the costs of building a new facility for my business?
- Can an SBA 7(a) loan cover the cost of relocating the acquired business to a new facility?
- How do SBA 7(a) rules apply to a business that operates as a shared workspace or co-working facility?
- What if my personal credit report shows a recent late payment on a minor credit card?
- Does having many recent credit inquiries on my personal credit report affect SBA 7(a) loan approval chances?
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.
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