Glossary · Doing the deal
Commitment Letter(Loan commitment)
In short
A formal document from the lender outlining the terms and conditions under which they will provide financing for your business acquisition. It's a conditional approval for your loan.
What it means in a deal
This letter details the loan amount, interest rate, term, collateral requirements, and any conditions you must meet before closing. Review it carefully, as these are the final deal terms. Fulfilling these conditions is essential for moving to closing and receiving funds.
Official sources
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 Commitment Letter
- Can a commitment to inject additional working capital after closing count towards my equity injection?
- Does a gift letter need to be from a U.S. citizen or permanent resident for equity injection?
- What is the typical timeframe from submitting a complete application to receiving a firm SBA 7(a) loan commitment?
- Are there specific requirements for a gift letter if funds are received from multiple immediate family members for the down payment?
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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