{"ok":true,"canonical_url":"https://dealroom.so/glossary/pre-disbursement-condition","api_url":"https://dealroom.so/api/public/glossary/pre-disbursement-condition","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":"pre-disbursement-condition","term":"Pre-disbursement condition","group":"The loan itself","definition":"These are specific requirements the lender sets that you must fulfill before they will release the loan funds. You care because failing to meet any condition can delay or even cancel your loan disbursement and thus the entire deal.","what_it_means":"Common conditions might include obtaining specific insurance policies, providing updated financial statements, or registering certain legal entities. Work closely with your attorney and lender to track and complete all these conditions well before the scheduled closing date.","url":"https://dealroom.so/glossary/pre-disbursement-condition","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":"sba-loan-authorization","term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"},{"slug":"closing-document","term":"Closing document","url":"https://dealroom.so/glossary/closing-document"}],"related_questions":[{"question":"What if a Phase I ESA identifies a Recognized Environmental Condition (REC) but deems it a 'de minimis' condition?","url":"https://dealroom.so/for-lenders/questions/what-if-a-phase-i-esa-identifies-a-recognized-environmental-condition-rec-but-deems-it-a-d"},{"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":"What specific conditions might cause an SBA 7(a) loan application to be denied even after initial pre-qualification?","url":"https://dealroom.so/sba-7a/questions/what-specific-conditions-might-cause-an-sba-7-a-loan-application-to-be-denied-even-after-i"},{"question":"When is life insurance on key principals a mandatory loan condition?","url":"https://dealroom.so/for-lenders/questions/when-is-life-insurance-on-key-principals-a-mandatory-loan-condition"},{"question":"Which pre-closing business expenses can count towards equity?","url":"https://dealroom.so/sba-7a/questions/which-pre-closing-business-expenses-can-count-towards-equity"},{"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"}]},"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 — Pre-disbursement condition","url":"https://dealroom.so/glossary/pre-disbursement-condition","source_type":"DealRoom Data"}}