{"ok":true,"canonical_url":"https://dealroom.so/glossary/principal-deferment","api_url":"https://dealroom.so/api/public/glossary/principal-deferment","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-deferment","term":"Principal deferment","group":"The loan itself","definition":"This is a period during a loan's term where you only pay interest, postponing principal payments. It can provide temporary cash flow relief.","what_it_means":"Some SBA 7(a) loans, especially for start-ups or specific situations, might offer an initial period of principal deferment. This means your early payments are interest-only, easing the immediate cash flow burden as you ramp up. Understand the deferment period and when full principal and interest payments begin.","url":"https://dealroom.so/glossary/principal-deferment","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"},{"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"},{"slug":"principal-and-interest","term":"Principal and interest","url":"https://dealroom.so/glossary/principal-and-interest"}],"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":"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 of payments for a 7(a) loan without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-deferment-of-payments-for-a-7-a-loan-without-prior-sba-approval"}]},"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 deferment","url":"https://dealroom.so/glossary/principal-deferment","source_type":"DealRoom Data"}}