Glossary · The loan itself
Accrued Interest
In short
This is the interest that has accumulated on a loan but has not yet been paid. It grows over time, even if payments aren't due immediately.
What it means in a deal
In an SBA loan, accrued interest is calculated daily on the outstanding principal balance. Be aware of how interest accrues between your first disbursement and your first payment. This can impact your initial cash flow.
Official sources
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.
Related terms
Common questions about Accrued Interest
- Can interest be accrued and paid on a seller note while it is on full standby?
- For a seller note on full standby, is it permissible for the accrued interest to capitalize or compound during the SBA 7(a) loan term?
- What happens to the interest rate on an SBA 7(a) loan if general market interest rates go down significantly?
- Can a full standby seller note be interest-bearing if interest is deferred until after the SBA loan is repaid?
- What is the difference between a fixed interest rate and a variable interest rate on an SBA 7(a) loan?
- How are SBA 7(a) loan interest rates determined?
Defined by CapBench 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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