{"ok":true,"canonical_url":"https://dealroom.so/glossary/payment-deferment-period","api_url":"https://dealroom.so/api/public/glossary/payment-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":"payment-deferment-period","term":"Payment Deferment Period","group":"The loan itself","definition":"A temporary period during which the borrower is not required to make principal or interest payments on a loan. This can offer a buffer during the initial takeover.","what_it_means":"Some SBA loans may allow for an initial 'deferment period' where you only pay interest, or no payments at all, for a few months after closing. This can help preserve working capital as you take over the business. Ensure you understand the terms and when full payments begin.","url":"https://dealroom.so/glossary/payment-deferment-period","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"}],"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":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"amortization","term":"Amortization","url":"https://dealroom.so/glossary/amortization"}],"related_questions":[{"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 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 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 — Payment Deferment Period","url":"https://dealroom.so/glossary/payment-deferment-period","source_type":"DealRoom Data"}}