Skip to main content

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.

Common questions about Commitment Letter

← Browse all glossary 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.

Line up financing while you're under LOI

Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.

Free · No documents · Usually same-day

Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.

Scroll