{"ok":true,"canonical_url":"https://www.capbench.com/glossary/principal-repayment","api_url":"https://www.capbench.com/api/public/glossary/principal-repayment","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-17","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","CapBench lender and franchise enrichment"],"term":{"slug":"principal-repayment","term":"Principal repayment","group":"The loan itself","definition":"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.","what_it_means":"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.","url":"https://www.capbench.com/glossary/principal-repayment","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://www.capbench.com/sba-7a/sources/sop-50-10"}],"related":[{"slug":"amortization","term":"Amortization","url":"https://www.capbench.com/glossary/amortization"},{"slug":"interest-only-payment","term":"Interest-Only Payment","url":"https://www.capbench.com/glossary/interest-only-payment"},{"slug":"principal-and-interest","term":"Principal and interest","url":"https://www.capbench.com/glossary/principal-and-interest"},{"slug":"deferred-principal-payment","term":"Deferred Principal Payment","url":"https://www.capbench.com/glossary/deferred-principal-payment"}],"related_questions":[{"question":"If a seller note is on full standby, when can the principal repayments legally begin?","url":"https://www.capbench.com/sba-7a/questions/if-a-seller-note-is-on-full-standby-when-can-the-principal-repayments-legally-begin"},{"question":"Is there a prepayment penalty for early repayment of my SBA 7(a) loan if the principal balance is under $500,000?","url":"https://www.capbench.com/sba-7a/questions/is-there-a-prepayment-penalty-for-early-repayment-of-my-sba-7-a-loan-if-the-principal-bala"},{"question":"What is the typical repayment term for working capital only?","url":"https://www.capbench.com/sba-7a/questions/what-is-the-typical-repayment-term-for-working-capital-only"},{"question":"What happens to an SBA loan if a principal owner or guarantor dies unexpectedly?","url":"https://www.capbench.com/sba-7a/questions/what-happens-to-an-sba-loan-if-a-principal-owner-or-guarantor-dies-unexpectedly"},{"question":"What if a principal has a recent criminal history that is not a felony?","url":"https://www.capbench.com/for-lenders/questions/what-if-a-principal-has-a-recent-criminal-history-that-is-not-a-felony"},{"question":"Does the SBA set specific repayment schedules for 7(a) loans?","url":"https://www.capbench.com/sba-7a/questions/does-the-sba-set-specific-repayment-schedules-for-7-a-loans"}]},"caveats":["Definitions represent CapBench's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"CapBench Glossary — Principal repayment","url":"https://www.capbench.com/glossary/principal-repayment","source_type":"CapBench Data"}}