{"ok":true,"canonical_url":"https://dealroom.so/glossary/funding-disbursement","api_url":"https://dealroom.so/api/public/glossary/funding-disbursement","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":"funding-disbursement","term":"Funding disbursement","group":"The loan itself","definition":"This is when the lender actually releases the loan money after closing, usually to an escrow account, to pay the seller and other project costs. It's the final step that makes the acquisition happen.","what_it_means":"For an SBA 7(a) acquisition, loan funds are disbursed according to the SBA Loan Authorization and the settlement statement. Funds typically go to the seller, seller note holders, and other approved uses like working capital or inventory. Ensure all conditions precedent to funding are met to avoid delays.","url":"https://dealroom.so/glossary/funding-disbursement","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":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"},{"slug":"escrow-holdback","term":"Escrow / holdback","url":"https://dealroom.so/glossary/escrow-holdback"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"}],"related_questions":[{"question":"After SBA 7(a) loan approval, what's the typical timeframe for closing and disbursement?","url":"https://dealroom.so/sba-7a/questions/after-sba-7-a-loan-approval-what-s-the-typical-timeframe-for-closing-and-disbursement"},{"question":"How does a lender resolve an E-Tran error where the authorized loan amount is incorrect after approval but before disbursement?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-resolve-an-e-tran-error-where-the-authorized-loan-amount-is-incorrect-af"},{"question":"What is the typical timeframe from application to funding for a 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-timeframe-from-application-to-funding-for-a-7-a-loan"},{"question":"What is the typical timeframe from submitting a complete application to receiving initial funding?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-timeframe-from-submitting-a-complete-application-to-receiving-initial-"},{"question":"What role does life insurance play in funding a buy-sell agreement for business partners?","url":"https://dealroom.so/sba-7a/questions/what-role-does-life-insurance-play-in-funding-a-buy-sell-agreement-for-business-partners"},{"question":"What is the typical timeframe from application to funding for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-typical-timeframe-from-application-to-funding-for-an-sba-7-a-loan"}]},"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 — Funding disbursement","url":"https://dealroom.so/glossary/funding-disbursement","source_type":"DealRoom Data"}}