{"ok":true,"canonical_url":"https://dealroom.so/glossary/unpaid-principal","api_url":"https://dealroom.so/api/public/glossary/unpaid-principal","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":"unpaid-principal","term":"Unpaid Principal","group":"The loan itself","definition":"Unpaid principal is the portion of your original loan amount that you still owe, excluding any accumulated interest. This is the balance on which interest is calculated.","what_it_means":"Each loan payment you make is split between interest and principal. Early in the loan term, more goes to interest; later, more reduces the unpaid principal. Understanding this amortization schedule helps you track your actual debt reduction over the loan's life.","url":"https://dealroom.so/glossary/unpaid-principal","official_sources":[],"related":[{"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"},{"slug":"debt-service","term":"Debt service","url":"https://dealroom.so/glossary/debt-service"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"}],"related_questions":[{"question":"What happens to an SBA loan if a principal owner or guarantor dies unexpectedly?","url":"https://dealroom.so/sba-7a/questions/what-happens-to-an-sba-loan-if-a-principal-owner-or-guarantor-dies-unexpectedly"},{"question":"What if a principal has a recent criminal history that is not a felony?","url":"https://dealroom.so/for-lenders/questions/what-if-a-principal-has-a-recent-criminal-history-that-is-not-a-felony"},{"question":"If a seller note is on full standby, when can the principal repayments legally begin?","url":"https://dealroom.so/sba-7a/questions/if-a-seller-note-is-on-full-standby-when-can-the-principal-repayments-legally-begin"},{"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"},{"question":"Can a seller note be subordinate to the SBA loan but still receive principal payments?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-subordinate-to-the-sba-loan-but-still-receive-principal-payments"},{"question":"What is the required personal ownership percentage to be considered a 'principal' by the SBA?","url":"https://dealroom.so/sba-loans/basics/what-is-the-required-personal-ownership-percentage-to-be-considered-a-principal-by-the-sba"}]},"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 — Unpaid Principal","url":"https://dealroom.so/glossary/unpaid-principal","source_type":"DealRoom Data"}}