Glossary · The loan itself
Fully Amortizing Payment
In short
This is a loan payment schedule where each payment includes both principal and interest, designed to completely pay off the loan by the end of its term. You won't have a large lump sum due at the end.
What it means in a deal
Most SBA 7(a) loans are fully amortizing, meaning your regular payments will gradually reduce your principal balance to zero. This provides predictability and avoids balloon payments, but it means higher initial payments compared to interest-only or deferred principal options. Understand your debt service.
Related terms
Common questions about Fully Amortizing Payment
- Can the seller receive interest payments on a fully subordinated seller note during the SBA loan term?
- What are the consequences if a fully standby seller note is prematurely repaid?
- Can an SBA 7(a) loan fully finance the goodwill component of a business acquisition?
- How long does it typically take for an SBA 7(a) loan to fully close?
- What happens if business assets are insufficient to fully collateralize the SBA 7(a) loan?
- Can I sell the acquired business before the SBA loan is fully repaid without penalty?
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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