{"ok":true,"canonical_url":"https://dealroom.so/glossary/temporary-deferment","api_url":"https://dealroom.so/api/public/glossary/temporary-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":"temporary-deferment","term":"Temporary Deferment","group":"Doing the deal","definition":"A temporary pause in your loan payments, usually for principal and sometimes interest, granted by the lender under specific circumstances. Buyer cares because it can provide crucial breathing room if the business faces unexpected early challenges.","what_it_means":"If your newly acquired business struggles post-closing due to unforeseen issues, a temporary deferment might be an option. You'd need to negotiate this with your lender, demonstrating the temporary nature of the hardship and a clear plan to resume payments. It's not a given, so have a strong contingency plan.","url":"https://dealroom.so/glossary/temporary-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"}],"related":[{"slug":"deferment-period","term":"Deferment Period","url":"https://dealroom.so/glossary/deferment-period"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"servicing","term":"Servicing","url":"https://dealroom.so/glossary/servicing"}],"related_questions":[{"question":"How does the SBA handle a temporary business closure during the acquisition transition?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-handle-a-temporary-business-closure-during-the-acquisition-transition"},{"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":"What if the business I'm buying has a temporary decline in revenue during the due diligence period?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-a-temporary-decline-in-revenue-during-the-due-diligenc"},{"question":"If the business I'm buying has a temporary decline in revenue during due diligence, will it kill the deal?","url":"https://dealroom.so/sba-7a/questions/if-the-business-i-m-buying-has-a-temporary-decline-in-revenue-during-due-diligence-will-it"},{"question":"If the business I'm buying has a temporary decline in revenue during the due diligence period, will it kill the deal?","url":"https://dealroom.so/for-lenders/questions/if-the-business-i-m-buying-has-a-temporary-decline-in-revenue-during-the-due-diligence-per"},{"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"}]},"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 — Temporary Deferment","url":"https://dealroom.so/glossary/temporary-deferment","source_type":"DealRoom Data"}}