Glossary · The loan itself
In short
A temporary period during which the borrower is not required to make principal or interest payments on a loan. This can offer a buffer during the initial takeover.
Some SBA loans may allow for an initial 'deferment period' where you only pay interest, or no payments at all, for a few months after closing. This can help preserve working capital as you take over the business. Ensure you understand the terms and when full payments begin.
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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