{"ok":true,"canonical_url":"https://dealroom.so/glossary/acceleration-of-the-note","api_url":"https://dealroom.so/api/public/glossary/acceleration-of-the-note","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"acceleration-of-the-note","term":"Acceleration of the Note","aka":"Acceleration","group":"The loan itself","definition":"A clause in your loan agreement that allows the lender to demand immediate repayment of the entire outstanding loan balance if you default. This is a serious consequence of failing to meet your loan obligations.","what_it_means":"If you breach the loan agreement (e.g., miss payments, fail to maintain insurance, or violate covenants), the lender can \"accelerate\" the note. This means the full remaining balance becomes due immediately, rather than over the original loan term. It's a key enforcement tool for the lender and a clear indicator of loan default.","url":"https://dealroom.so/glossary/acceleration-of-the-note","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"note","term":"Note","url":"https://dealroom.so/glossary/note"},{"slug":"recourse","term":"Recourse","url":"https://dealroom.so/glossary/recourse"},{"slug":"liquidation-proceedings","term":"Liquidation Proceedings","url":"https://dealroom.so/glossary/liquidation-proceedings"}],"related_questions":[{"question":"Can a seller note on full standby have an acceleration clause if the business defaults on the SBA loan?","url":"https://dealroom.so/for-lenders/questions/can-a-seller-note-on-full-standby-have-an-acceleration-clause-if-the-business-defaults-on-"},{"question":"What is the required duration of a full standby seller note?","url":"https://dealroom.so/sba-7a/questions/what-is-the-required-duration-of-a-full-standby-seller-note"},{"question":"Can the seller receive any form of compensation from the acquired business during the standby period of their seller note?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-receive-any-form-of-compensation-from-the-acquired-business-during-the-stan"},{"question":"What if the seller of the business insists on receiving a portion of their note repayment within the first year?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-of-the-business-insists-on-receiving-a-portion-of-their-note-repayment-"},{"question":"What are the specific terms for the duration of a seller note on full standby?","url":"https://dealroom.so/sba-7a/questions/what-are-the-specific-terms-for-the-duration-of-a-seller-note-on-full-standby"},{"question":"What is the required duration of a full standby seller note for an acquisition?","url":"https://dealroom.so/for-lenders/questions/what-is-the-required-duration-of-a-full-standby-seller-note-for-an-acquisition"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Acceleration of the Note","url":"https://dealroom.so/glossary/acceleration-of-the-note","source_type":"DealRoom Data"}}