Glossary · Doing the deal
Debt acceleration
In short
A clause in your loan agreement that allows the lender to demand immediate repayment of the entire outstanding loan balance if you default on certain terms. This is a severe consequence of non-compliance.
What it means in a deal
If you trigger a default clause in your SBA loan agreement – for example, by failing to make payments or violating a covenant – the lender can accelerate the debt. This means the full loan amount becomes due immediately. Review all loan covenants carefully to avoid situations that could lead to debt acceleration.
Official sources
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.
Related terms
Common questions about Debt acceleration
- Can a seller note on full standby have an acceleration clause if the business defaults on the SBA loan?
- How is prior owner debt converted to equity treated for injection purposes?
- Can I use an SBA 7(a) loan to refinance existing business debt?
- Can an SBA 7(a) loan be used to refinance existing business debt?
- Can I use an SBA 7(a) loan to pay off personal debt?
- Does the SBA require a specific debt service coverage ratio (DSCR) for approval?
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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