Glossary · People and paperwork
Debtor
In short
The individual or entity that owes money. In a business acquisition, the business itself might be a debtor to a seller note, or you, as the buyer, will be the debtor to the SBA loan.
What it means in a deal
As a buyer, you become the primary debtor on the SBA 7(a) loan. The business you acquire will also likely have outstanding debts that need to be addressed or assumed. Understand who owes what and to whom, as this impacts the business's balance sheet and your ongoing liabilities.
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.
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