Glossary · The loan itself
Funding disbursement
In short
This is when the lender actually releases the loan money after closing, usually to an escrow account, to pay the seller and other project costs. It's the final step that makes the acquisition happen.
What it means in a deal
For an SBA 7(a) acquisition, loan funds are disbursed according to the SBA Loan Authorization and the settlement statement. Funds typically go to the seller, seller note holders, and other approved uses like working capital or inventory. Ensure all conditions precedent to funding are met to avoid delays.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Funding 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 typical timeframe from application to funding for a 7(a) loan?
- What is the typical timeframe from submitting a complete application to receiving initial funding?
- What role does life insurance play in funding a buy-sell agreement for business partners?
- What is the typical timeframe from application to funding for 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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