{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-deferment-period","api_url":"https://dealroom.so/api/public/glossary/loan-deferment-period","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":"loan-deferment-period","term":"Loan Deferment Period","group":"The loan itself","definition":"This is an initial period, typically at the start of your loan, during which you only pay interest, or sometimes no payments are due at all. Principal payments are postponed.","what_it_means":"Some SBA loans may include a short deferment period, usually a few months, allowing you to establish operations before full principal and interest payments begin. While this provides initial cash flow relief, remember that your principal balance doesn't decrease during this time. Confirm any deferment terms with your lender.","url":"https://dealroom.so/glossary/loan-deferment-period","official_sources":[{"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":"interest-only-payment","term":"Interest-Only Payment","url":"https://dealroom.so/glossary/interest-only-payment"},{"slug":"deferred-principal-payment","term":"Deferred Principal Payment","url":"https://dealroom.so/glossary/deferred-principal-payment"},{"slug":"amortization","term":"Amortization","url":"https://dealroom.so/glossary/amortization"}],"related_questions":[{"question":"Can a lender approve a deferment period without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-deferment-period-without-prior-sba-approval"},{"question":"Can a lender approve a deferment period for my SBA 7(a) loan without SBA approval?","url":"https://dealroom.so/sba-7a/questions/can-a-lender-approve-a-deferment-period-for-my-sba-7-a-loan-without-sba-approval"},{"question":"When can a lender approve a deferment period for a 7(a) loan without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-approve-a-deferment-period-for-a-7-a-loan-without-prior-sba-approval"},{"question":"Can a lender extend the payment deferment period on a 7(a) loan without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-extend-the-payment-deferment-period-on-a-7-a-loan-without-prior-sba-approval"},{"question":"Can a lender approve a deferment period for an SBA 7(a) loan without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-deferment-period-for-an-sba-7-a-loan-without-prior-sba-approval"},{"question":"When can a lender approve a deferment period without prior SBA approval for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-approve-a-deferment-period-without-prior-sba-approval-for-a-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 — Loan Deferment Period","url":"https://dealroom.so/glossary/loan-deferment-period","source_type":"DealRoom Data"}}