Glossary · The loan itself
In short
The portion of your loan payment that reduces the actual amount of money you borrowed, separate from the interest. Each principal payment directly decreases your outstanding loan balance.
Your monthly loan payment consists of both principal and interest. Early in the loan term, a larger portion typically goes towards interest, gradually shifting to more principal as the loan amortizes. Understanding your principal payments helps you track debt reduction and overall financial health of the business post-acquisition.
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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