Glossary · People and paperwork
Loan agreement
In short
The legally binding contract between you and the lender that outlines all the terms and conditions of your loan. It dictates your obligations and the lender's rights.
What it means in a deal
This is the most critical document you'll sign for your 7(a) loan. It details the interest rate, repayment schedule, collateral, covenants, and what constitutes a loan default. Review it thoroughly with your attorney before signing.
Related terms
Common questions about Loan agreement
- How does an operating agreement impact an SBA partner buyout loan?
- How does life insurance effectively fund a business buy-sell agreement?
- How does the purchase agreement structure affect an SBA partner buyout?
- What happens if the seller terminates the purchase agreement mid-process?
- What are the specific conditions for an acceptable full standby agreement?
- What if the seller withdraws from the sale agreement during the SBA loan underwriting process?
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.