Glossary · The loan itself
In short
These are the two main components of your loan payments. Principal reduces the loan balance, while interest is the cost of borrowing.
Each month, your SBA loan payment consists of a portion that pays down the principal balance and a portion that covers the interest accrued. Early in the loan term, more of your payment goes towards interest. Understanding this breakdown helps you project future debt service costs and cash flow.
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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