Glossary · The loan itself
In short
This is a loan payment where you only pay the interest owed, not any principal. It lowers your monthly payments temporarily but doesn't reduce your loan balance.
Some SBA loans offer an initial period of interest-only payments, usually at the start of the loan. This can help with cash flow during the transition or ramp-up phase of your new business. Understand the total impact on your loan amortization and overall cost.
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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