Glossary · Doing the deal
Repayment Agreement
In short
A repayment agreement is a formal contract detailing the terms by which a debt will be repaid. It outlines payment schedules, interest rates, and consequences for default.
What it means in a deal
In an acquisition, a repayment agreement is crucial for any seller financing or other subordinated debt. The SBA requires specific language in these agreements, often mandating a 'standby' period where the seller receives no payments. Ensure the terms align with SBA requirements, especially if the seller note is part of your equity injection.
Related terms
Common questions about Repayment Agreement
- What is the typical repayment term for working capital only?
- Does the SBA set specific repayment schedules for 7(a) loans?
- What are the typical repayment terms for an SBA 7(a) loan?
- What are the typical repayment periods for an SBA 7(a) loan?
- What is the typical repayment period for an SBA 7(a) loan?
- What is the typical repayment frequency for an SBA 7(a) loan?
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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