Glossary · People and paperwork
IRS Repayment Plan
In short
An agreement with the IRS to pay overdue taxes in installments. For an SBA loan, any personal or business tax issues must be addressed and current.
What it means in a deal
If the seller or you have an IRS Repayment Plan, it must be current and fully satisfied or in good standing with sufficient payments made. For an SBA loan, any federal debt, including tax liens, must be resolved or addressed before or at closing. An Active Tax Lien is a major problem if not handled.
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 IRS Repayment Plan
- What if the business I'm acquiring currently owes money to the IRS or state tax authorities?
- What happens if my business has outstanding federal taxes, like IRS debt, when applying for an SBA loan?
- What is the typical repayment term for working capital only?
- Is a comprehensive business plan mandatory for an SBA 7(a) loan?
- Does the SBA set specific repayment schedules for 7(a) loans?
- Is a detailed business plan necessary for an SBA 7(a) loan application?
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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