Glossary · People and paperwork
Irrevocable trust
In short
A trust that generally cannot be modified, amended, or terminated by the grantor after it's created. The grantor gives up control over the assets transferred into it.
What it means in a deal
If a business's ownership or assets are held in an irrevocable trust, the SBA will require the trustee and potentially the beneficiaries to be involved. The lender will need to understand who controls the trust and its assets, as these individuals may be required to guarantee the loan.
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 Irrevocable trust
- For a business owned by a trust, what citizenship and residency requirements apply to the trustee for 7(a) eligibility?
- Can a business owned by a trust be eligible for a 7(a) loan if the trustee is a foreign national?
- How does the SBA determine affiliation between businesses controlled by a common trust?
- When does common ownership through a trust or estate create affiliation for size purposes?
- Can I use inherited money that is currently in a trust to fund my equity injection?
- Can a trust or an estate be an eligible borrower for an SBA 7(a) loan?
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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