Glossary · The loan itself
In short
A period during a loan's term where you only pay interest, and no principal. This reduces initial monthly payments, providing a grace period before full amortization begins.
Some SBA 7(a) loans may offer a short deferment period for principal payments, typically for the first few months. This can ease the cash flow burden during the initial transition of ownership. Understand the exact terms of any deferment period, as principal payments will resume and increase your monthly obligations thereafter.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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