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Glossary · The loan itself

Loan Restructuring

In short

This involves modifying the original terms of a loan, such as the repayment schedule, interest rate, or maturity date, to make it more manageable for a struggling borrower. It's a way to avoid default.

What it means in a deal

If your business faces financial hardship that impacts your ability to make loan payments, you might negotiate loan restructuring with your SBA lender. This could involve deferring principal payments or extending the loan term. Proactively engage with your lender at the first sign of trouble; waiting until default makes restructuring much harder.

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.

Common questions about Loan Restructuring

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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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