Glossary · The loan itself
In short
This is a loan payment schedule where each payment includes both principal and interest, designed to completely pay off the loan by the end of its term. You won't have a large lump sum due at the end.
Most SBA 7(a) loans are fully amortizing, meaning your regular payments will gradually reduce your principal balance to zero. This provides predictability and avoids balloon payments, but it means higher initial payments compared to interest-only or deferred principal options. Understand your debt service.
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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