Glossary · The loan itself
First Disbursement(Loan funding)
In short
The first disbursement is when the initial funds from your SBA loan are released, typically at closing. This marks the official funding of your acquisition.
What it means in a deal
At the closing date, the loan funds are disbursed according to the Use of Proceeds section of your SBA Loan Authorization. This usually involves paying the seller, covering closing costs, and potentially funding initial working capital. Ensure all conditions precedent to disbursement are met.
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 First Disbursement
- After SBA 7(a) loan approval, what's the typical timeframe for closing and disbursement?
- How does a lender resolve an E-Tran error where the authorized loan amount is incorrect after approval but before disbursement?
- What is the first step to apply for an SBA 7(a) loan?
- What are the SBA's requirements for obtaining a first lien position on all principal business assets?
- Does the SBA always require a first lien position on all business assets for an acquisition loan?
- What constitutes 'relevant management experience' for a first-time business buyer using an SBA 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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