Glossary · Reading the business
Debt Structure
In short
This refers to the mix of debt a business carries, including different types of loans, interest rates, and repayment terms. Buyers care because it impacts the business's financial health, cash flow, and ability to take on new debt.
What it means in a deal
When acquiring a business, you'll analyze the existing debt structure to understand its obligations and how your new SBA loan will integrate. A well-structured deal might include a seller note on standby, complementing your 7(a) loan. Consider how the total debt service will affect your cash flow.
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
Common questions about Debt Structure
- How does the purchase agreement structure affect an SBA partner buyout?
- Can I change my business structure after getting an SBA 7(a) loan?
- How does seller financing structure impact the required equity injection for a business acquisition?
- Are there specific requirements for the business entity structure for an SBA 7(a) loan?
- Does my business legal structure (like LLC or Sole Proprietorship) affect SBA 7(a) loan eligibility?
- Can an earn-out provision in a purchase agreement affect 7(a) loan eligibility or structure?
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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