Glossary · The loan itself
In short
A temporary period where your loan payments only cover the interest accrued, not any principal. This can provide some initial cash flow relief for your new business.
Some SBA 7(a) loans, especially for acquisitions with significant integration costs, may include an initial interest-only period. This helps conserve cash flow early on when the business might be adjusting. Understand when principal payments begin and plan your cash flow accordingly.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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