{"ok":true,"canonical_url":"https://dealroom.so/glossary/accrue-interest","api_url":"https://dealroom.so/api/public/glossary/accrue-interest","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":"accrue-interest","term":"Accrue Interest","group":"The loan itself","definition":"This means interest is continuously calculated and added to the principal balance over time. Buyers need to understand how interest accrues to accurately forecast their total loan costs and repayment schedule.","what_it_means":"On an SBA 7(a) loan, interest typically accrues daily based on the outstanding principal balance and the variable interest rate. Your monthly payment covers the accrued interest first, with the remainder reducing the principal. Early payments can reduce total interest paid.","url":"https://dealroom.so/glossary/accrue-interest","official_sources":[],"related":[{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"principal-and-interest","term":"Principal and interest","url":"https://dealroom.so/glossary/principal-and-interest"},{"slug":"amortization-period","term":"Amortization Period","url":"https://dealroom.so/glossary/amortization-period"},{"slug":"loan-amount","term":"Loan Amount","url":"https://dealroom.so/glossary/loan-amount"}],"related_questions":[{"question":"Can a full standby seller note accrue interest during the standby period?","url":"https://dealroom.so/for-lenders/questions/can-a-full-standby-seller-note-accrue-interest-during-the-standby-period"},{"question":"Can a standby seller note accrue or pay interest during the loan?","url":"https://dealroom.so/sba-7a/questions/can-a-standby-seller-note-accrue-or-pay-interest-during-the-loan"},{"question":"When can a standby seller note accrue or pay interest during the loan term?","url":"https://dealroom.so/for-lenders/questions/when-can-a-standby-seller-note-accrue-or-pay-interest-during-the-loan-term"},{"question":"Can a seller note accrue interest during the full standby period for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-accrue-interest-during-the-full-standby-period-for-an-sba-loan"},{"question":"Can a seller note on full standby accrue interest during the standby period, even if not paid?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-on-full-standby-accrue-interest-during-the-standby-period-even-if-not-pa"},{"question":"If a seller note on full standby, can it still accrue interest during the SBA loan term?","url":"https://dealroom.so/for-lenders/questions/if-a-seller-note-on-full-standby-can-it-still-accrue-interest-during-the-sba-loan-term"}]},"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 — Accrue Interest","url":"https://dealroom.so/glossary/accrue-interest","source_type":"DealRoom Data"}}