{"ok":true,"canonical_url":"https://dealroom.so/glossary/initial-disbursement","api_url":"https://dealroom.so/api/public/glossary/initial-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":"initial-disbursement","term":"Initial disbursement","group":"The loan itself","definition":"This is the first release of funds from your SBA loan, which typically occurs at closing. It covers the purchase price, working capital, and other immediate project costs.","what_it_means":"The timing of the initial disbursement is tied directly to your closing date. Ensure all conditions precedent to funding are met, as delays can push back the disbursement. All subsequent disbursements, if any, will follow specific terms outlined in your loan agreement and the SBA Loan Authorization.","url":"https://dealroom.so/glossary/initial-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":"disbursement-deadline","term":"Disbursement deadline","url":"https://dealroom.so/glossary/disbursement-deadline"},{"slug":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"}],"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":"Can an SBA 7(a) loan fund initial inventory for a new business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-fund-initial-inventory-for-a-new-business"},{"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":"Does an SBA 7(a) loan cover the initial franchise fee and associated startup costs?","url":"https://dealroom.so/sba-7a/questions/does-an-sba-7-a-loan-cover-the-initial-franchise-fee-and-associated-startup-costs"},{"question":"Can the SBA 7(a) loan include funds to cover initial operating losses post-acquisition?","url":"https://dealroom.so/sba-7a/questions/can-the-sba-7-a-loan-include-funds-to-cover-initial-operating-losses-post-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 — Initial disbursement","url":"https://dealroom.so/glossary/initial-disbursement","source_type":"DealRoom Data"}}