{"ok":true,"canonical_url":"https://dealroom.so/glossary/balloon-payment","api_url":"https://dealroom.so/api/public/glossary/balloon-payment","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":"balloon-payment","term":"Balloon payment","group":"The loan itself","definition":"A large lump sum due at the end of some loans. SBA 7(a) loans never have one; many seller notes do — read yours.","what_it_means":"Balloon payments are common on seller notes, where the seller may agree to low or zero monthly payments but wants the full remaining balance paid at a specific date — often three to five years out. SBA 7(a) loans don't have balloons, which is one reason buyers prefer them. If your deal includes a seller note with a balloon, model what happens if the business can't generate the lump sum at maturity.","url":"https://dealroom.so/glossary/balloon-payment","official_sources":[],"related":[{"slug":"amortization","term":"Amortization","url":"https://dealroom.so/glossary/amortization"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"term-maturity","term":"Term / maturity","url":"https://dealroom.so/glossary/term-maturity"}],"related_questions":[{"question":"What counts as \"my own money\" for the down payment?","url":"https://dealroom.so/sba-loans/basics/what-counts-as-my-own-money-for-the-down-payment"},{"question":"Can an investor fund my SBA 7(a) down payment?","url":"https://dealroom.so/sba-7a/questions/can-an-investor-fund-my-sba-7-a-down-payment"},{"question":"Is my equity injection (down payment) always required to be cash?","url":"https://dealroom.so/sba-loans/basics/is-my-equity-injection-down-payment-always-required-to-be-cash"},{"question":"What if my down payment funds are transferred from an international account?","url":"https://dealroom.so/sba-7a/questions/what-if-my-down-payment-funds-are-transferred-from-an-international-account"},{"question":"Can a credit card cash advance be used for my down payment?","url":"https://dealroom.so/sba-loans/basics/can-a-credit-card-cash-advance-be-used-for-my-down-payment"},{"question":"Does a loan from a relative count towards my required down payment?","url":"https://dealroom.so/sba-loans/basics/does-a-loan-from-a-relative-count-towards-my-required-down-payment"}]},"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 — Balloon payment","url":"https://dealroom.so/glossary/balloon-payment","source_type":"DealRoom Data"}}