{"ok":true,"canonical_url":"https://dealroom.so/glossary/principal-and-interest-payment","api_url":"https://dealroom.so/api/public/glossary/principal-and-interest-payment","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":"principal-and-interest-payment","term":"Principal and Interest Payment","aka":"P&I Payment","group":"The loan itself","definition":"This is the regular payment you make on your loan, covering both the portion that reduces your outstanding balance (principal) and the cost of borrowing (interest). It's your primary recurring loan expense.","what_it_means":"Your SBA 7(a) loan will have a fixed or variable Principal and Interest Payment, typically monthly. Understand how changes in the base rate (like WSJ Prime or Term SOFR) can affect your payment if your loan is variable. This payment is a critical component of your debt service and cash flow after debt service.","url":"https://dealroom.so/glossary/principal-and-interest-payment","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":"outstanding-balance","term":"Outstanding Balance","url":"https://dealroom.so/glossary/outstanding-balance"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"},{"slug":"variable-rate","term":"Variable rate","url":"https://dealroom.so/glossary/variable-rate"},{"slug":"wsj-prime","term":"WSJ Prime","url":"https://dealroom.so/glossary/wsj-prime"}],"related_questions":[{"question":"Can a 7(a) lender approve a deferment of principal and interest payments without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-lender-approve-a-deferment-of-principal-and-interest-payments-without-prior-sba-"},{"question":"If a seller note is structured with deferred principal payments but immediate interest payments, does it still qualify as full standby?","url":"https://dealroom.so/sba-7a/questions/if-a-seller-note-is-structured-with-deferred-principal-payments-but-immediate-interest-pay"},{"question":"What specific conditions allow a seller note with deferred principal payments but immediate interest to qualify as full standby?","url":"https://dealroom.so/for-lenders/questions/what-specific-conditions-allow-a-seller-note-with-deferred-principal-payments-but-immediat"},{"question":"If a seller note has deferred principal payments but pays interest from day one, does it qualify as full standby?","url":"https://dealroom.so/sba-7a/questions/if-a-seller-note-has-deferred-principal-payments-but-pays-interest-from-day-one-does-it-qu"},{"question":"If a seller provides a note for $100,000, can they receive principal or interest payments from the business during the SBA loan term?","url":"https://dealroom.so/sba-7a/questions/if-a-seller-provides-a-note-for-100-000-can-they-receive-principal-or-interest-payments-fr"},{"question":"How does the SBA handle a short-term deferral of principal payments at the start?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-handle-a-short-term-deferral-of-principal-payments-at-the-start"}]},"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 — Principal and Interest Payment","url":"https://dealroom.so/glossary/principal-and-interest-payment","source_type":"DealRoom Data"}}