Glossary · The loan itself
Deferred payment
In short
A scheduled loan payment that is postponed to a later date. This offers temporary financial relief but usually results in higher overall interest paid over the life of the loan.
What it means in a deal
In certain situations, your lender might approve deferred payments, particularly during a workout arrangement or after a natural disaster. For an SBA 7(a) loan, any deferment must be approved by the lender and adhere to specific SBA servicing guidelines. It's a temporary measure, not a long-term solution for ongoing cash flow issues.
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 Deferred payment
- If a seller note is structured with deferred principal payments but immediate interest payments, does it still qualify as full standby?
- Can a seller note with deferred payments but no interest count as full standby for equity injection?
- What specific conditions allow a seller note with deferred principal payments but immediate interest to qualify as full standby?
- If a seller note has deferred principal payments but pays interest from day one, does it qualify as full standby?
- What if the business I'm buying has existing deferred revenue or unearned income?
- Can a partial equity injection come from a deferred management bonus from my current employer?
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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