{"ok":true,"canonical_url":"https://dealroom.so/glossary/amortization","api_url":"https://dealroom.so/api/public/glossary/amortization","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":"amortization","term":"Amortization","group":"The loan itself","definition":"Paying a loan down in equal monthly payments of principal and interest. 7(a) acquisition loans fully amortize — no balloon payment at the end.","what_it_means":"With a fully amortizing loan, every payment chips away at principal from day one. By the end of the ten-year term, the balance is zero — no surprise final payment. Early in the term, most of each payment is interest; later, it flips to mostly principal. This is important for modeling: your DSCR calculation uses the actual payment, which stays consistent, not just the interest portion.","url":"https://dealroom.so/glossary/amortization","official_sources":[],"related":[{"slug":"term-maturity","term":"Term / maturity","url":"https://dealroom.so/glossary/term-maturity"},{"slug":"balloon-payment","term":"Balloon payment","url":"https://dealroom.so/glossary/balloon-payment"},{"slug":"dscr","term":"DSCR","url":"https://dealroom.so/glossary/dscr"},{"slug":"cash-flow-after-debt-service","term":"Cash flow after debt service","url":"https://dealroom.so/glossary/cash-flow-after-debt-service"}],"related_questions":[],"related_tool":{"label":"SBA 7(a) payment calculator","url":"https://dealroom.so/sba-7a/calculator"}},"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 — Amortization","url":"https://dealroom.so/glossary/amortization","source_type":"DealRoom Data"}}