Glossary · The loan itself
Payoff
In short
The total amount required to fully satisfy an existing loan or debt. When buying a business, you'll ensure all existing business debts are paid off at closing.
What it means in a deal
At closing, any existing business debt you are not assuming must be paid off. This includes any previous SBA loans, lines of credit, or other secured debt. Your closing attorney will manage obtaining payoff letters from existing lenders to ensure clear title to assets and prevent future claims.
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
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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