Glossary · The loan itself
Deferment Period
In short
This is a specific timeframe during which you are allowed to postpone making payments on your loan, typically for principal. Interest usually still accrues during this time.
What it means in a deal
Your SBA loan may include an initial deferment period, allowing you to delay principal payments for a few months. This can be beneficial for cash flow as you take over the business. Understand when payments will fully begin and how it impacts the total loan term.
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 Deferment Period
- Can a lender approve a deferment period without prior SBA approval?
- Can a lender approve a deferment period for my SBA 7(a) loan without SBA approval?
- When can a lender approve a deferment period for a 7(a) loan without prior SBA approval?
- Can a lender extend the payment deferment period on a 7(a) loan without prior SBA approval?
- Can a lender approve a deferment period for an SBA 7(a) loan without prior SBA approval?
- When can a lender approve a deferment period without prior SBA approval for a 7(a) loan?
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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