{"ok":true,"canonical_url":"https://dealroom.so/glossary/loan-principal","api_url":"https://dealroom.so/api/public/glossary/loan-principal","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-principal","term":"Loan principal","group":"The loan itself","definition":"The loan principal is the initial amount of money borrowed, excluding any interest or fees. Your monthly payments primarily go towards reducing this principal amount, plus accrued interest.","what_it_means":"Understanding how payments reduce your loan principal is crucial. Early payments are heavily weighted towards interest, while later payments reduce principal faster. This impacts your equity build-up in the business and your total cost of borrowing over the loan maturity.","url":"https://dealroom.so/glossary/loan-principal","official_sources":[],"related":[{"slug":"amortization","term":"Amortization","url":"https://dealroom.so/glossary/amortization"},{"slug":"interest-only-payment","term":"Interest-Only Payment","url":"https://dealroom.so/glossary/interest-only-payment"},{"slug":"loan-maturity","term":"Loan maturity","url":"https://dealroom.so/glossary/loan-maturity"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"}],"related_questions":[{"question":"What happens to an SBA loan if a principal owner or guarantor dies unexpectedly?","url":"https://dealroom.so/sba-7a/questions/what-happens-to-an-sba-loan-if-a-principal-owner-or-guarantor-dies-unexpectedly"},{"question":"Can a seller note be subordinate to the SBA loan but still receive principal payments?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-subordinate-to-the-sba-loan-but-still-receive-principal-payments"},{"question":"What is the minimum ownership percentage requiring a personal guarantee from a 7(a) loan principal?","url":"https://dealroom.so/sba-7a/questions/what-is-the-minimum-ownership-percentage-requiring-a-personal-guarantee-from-a-7-a-loan-pr"},{"question":"What constitutes a 'serious criminal offense' that may cause 7(a) loan ineligibility for a principal?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-serious-criminal-offense-that-may-cause-7-a-loan-ineligibility-for-a-pr"},{"question":"Under what circumstances can a lender waive a required personal guaranty for a 7(a) loan principal?","url":"https://dealroom.so/for-lenders/questions/under-what-circumstances-can-a-lender-waive-a-required-personal-guaranty-for-a-7-a-loan-pr"},{"question":"What if a principal has a recent criminal history that is not a felony?","url":"https://dealroom.so/for-lenders/questions/what-if-a-principal-has-a-recent-criminal-history-that-is-not-a-felony"}]},"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 principal","url":"https://dealroom.so/glossary/loan-principal","source_type":"DealRoom Data"}}