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Glossary · The loan itself

Refinance

In short

Refinancing is the process of replacing an existing loan with a new loan, often to get better terms, a lower interest rate, or to consolidate debt.

What it means in a deal

While primarily used for existing business debt, an SBA 7(a) loan can include a refinance component as part of an acquisition. For instance, you might refinance existing seller debt or other business debt as part of the total project costs, provided it meets SBA eligibility for business debt refinancing.

Official sources

13 CFR Part 120 — Business Loans

Office of the Federal Register · Federal regulation

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 Refinance

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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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