# Can an SBA loan consolidate several business debts?

**Short answer:** Yes, if each debt qualifies under Appendix 14 of SOP 50 10 8.1. Debts refinanced together may be combined for the payment test. The lender must itemize any creditor receiving $10,000 or more.

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Last checked: 2026-11-08

Yes. One 7(a) loan can refinance several debts, if each one qualifies under Appendix 14 of SOP 50 10 8.1.

## How the payment test works on several debts

The new payment must be at least 10% less than the existing installment amounts in aggregate. Debts refinanced at the same time may be included in that calculation (App. 14, Para. A). Card debt, business home equity lines of credit (HELOCs), demand notes, balloon debt and qualifying revolving lines are excepted from the test. Appendix 14 does not say how to treat a mix of excepted and other debts, so ask your lender.

## Each debt has to stand on its own

- Each must be current for at least the last 12 months or the life of the loan, whichever is less.
- None can be a factoring agreement or an active merchant cash advance (App. 14, Paras. A.2 and A.3).
- None can be owed to an Small Business Investment Company (SBIC), a New Markets Venture Capital Company or an agent on the loan (App. 14, Para. A; Sec. A, Ch. 4, Para. D.2.f).
- None can have been incurred for an ineligible purpose, unless that condition no longer exists.

## What the lender must show

The SBA Terms and Conditions must identify the refinancing and itemize creditors receiving $10,000 or more. Mixed purposes can have a blended maturity, or up to 25 years if 51% or more of the proceeds are for real estate (App. 17, Para. A.5).

## 504 consolidation

SBA's 504 page allows consolidating debt only under 13 CFR 120.882. The refinanced debt can be one or more loans, if each qualifies (Sec. C, Ch. 1, Paras. C.10.a and C.11.b).

## Sources

- [SOP 50 10 8.1, App. 14, Para. A, General Requirements, Ten Percent Improvement to Installment Payment Amount, Paras. A.2 and A.3, and SBA Terms and Conditions (p. 355)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Para. D.2.f (Para. D begins p. 71)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 17, Para. A.5, Mixed purpose loans (p. 390)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [sba.gov/loans/504-loans, read November 8, 2026](https://www.sba.gov/loans/504-loans/)
- [13 CFR § 120.882](https://www.ecfr.gov/current/title-13/section-120.882)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Paras. C.10.a and C.11.b (Para. C begins p. 226)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)