Glossary · Doing the deal
Repair
In short
This refers to fixing physical deficiencies or damage to business assets or property. For an acquisition, significant repairs might impact the valuation or loan terms.
What it means in a deal
During due diligence, an appraisal or site visit might identify necessary repairs to real estate or equipment. If these repairs are substantial, they could affect the asset's appraised value or require funds to be allocated from the loan proceeds or your equity injection to complete them post-closing.
Related terms
Common questions about Repair
- What constitutes a "repair" to the SBA guaranty during a purchase request?
- What common underwriting errors typically lead to an SBA 7(a) loan guaranty repair?
- What is the key impact of a 'repair' on an SBA guaranty purchase request?
- Can a lender appeal an SBA decision to repair or deny a guaranty purchase request?
- What specific actions or omissions by a lender in liquidation can lead to a guaranty repair?
- What specific lender errors typically result in a 'repair' of the 7(a) guaranty during liquidation?
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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