Glossary · The loan itself
Restructuring of payments
In short
This involves changing the original terms of a loan's repayment schedule, often to help a borrower facing financial hardship avoid default. It could mean adjusting payment amounts or extending the loan term.
What it means in a deal
If your business faces unexpected financial challenges after acquisition, you might explore "restructuring of payments" with your lender. This could involve "deferred principal payment" or "interest-only payment" periods, but it requires lender and SBA approval. This is a "servicing" action to prevent "loan default."
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
Common questions about Restructuring of payments
- How does the SBA handle a short-term deferral of principal payments at the start?
- What is the significance of the "90-day rule" regarding equity injection and prior payments?
- Can a 7(a) lender approve a deferment of principal and interest payments without prior SBA approval?
- Can a lender approve a deferment of payments for a 7(a) loan without prior SBA approval?
- If a seller note is structured with deferred principal payments but immediate interest payments, does it still qualify as full standby?
- What if I have a history of missed payments on personal debts, even if they are now resolved?
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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