Glossary · Doing the deal
Disbursement
In short
The act of paying out funds. In an SBA loan, this is when the lender releases the approved loan money to you or directly to the seller/other parties for deal expenses.
What it means in a deal
Loan funds are disbursed at closing or shortly after, often directly to the seller, for working capital, or to cover closing costs. Ensure the disbursement schedule aligns with your deal's timeline and that all parties receive their funds as agreed to close the transaction smoothly.
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 Disbursement
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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