Glossary · The loan itself
In short
The portion of your loan payment that reduces the actual amount borrowed, distinct from the interest portion. This repayment gradually builds your equity in the acquired business.
Your SBA loan payments will consist of both principal and interest. Early in the loan term, a larger portion of each payment typically goes towards interest. Understanding your amortization schedule shows you how quickly you are paying down the actual debt and building equity in the business.
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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