Glossary · The loan itself
In short
This is an initial period, typically at the start of your loan, during which you only pay interest, or sometimes no payments are due at all. Principal payments are postponed.
Some SBA loans may include a short deferment period, usually a few months, allowing you to establish operations before full principal and interest payments begin. While this provides initial cash flow relief, remember that your principal balance doesn't decrease during this time. Confirm any deferment terms with your lender.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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