Glossary · The loan itself
Amortized
In short
An amortized loan is one where your regular payments gradually pay down both the principal and interest over the loan term. This ensures the loan is fully paid off by the end of its maturity period.
What it means in a deal
SBA 7(a) loans are fully amortized, meaning there are no balloon payments at the end of the term. Each payment contributes to reducing your principal balance, not just covering interest. This predictable repayment schedule helps you budget and avoid large lump sums, making financial planning more straightforward for the life of the loan.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
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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