Glossary · The loan itself
Interest accrual
In short
The process of interest building up on your loan balance over time, even before payments start. It determines the total interest owed on your debt.
What it means in a deal
Interest on your SBA loan starts accruing as soon as funds are disbursed, even if you have an initial deferment period for principal payments. You should understand your loan's interest rate (variable or fixed) and how often interest is calculated to accurately project your debt service. Accrued interest not paid can be added to the principal, increasing your total debt.
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 Interest accrual
- What happens to the interest rate on an SBA 7(a) loan if general market interest rates go down significantly?
- Can a full standby seller note be interest-bearing if interest is deferred until after the SBA loan is repaid?
- What is the difference between a fixed interest rate and a variable interest rate on an SBA 7(a) loan?
- How are SBA 7(a) loan interest rates determined?
- What defines 'insurable interest' for a business life insurance policy?
- Are SBA 7(a) loan interest rates fixed or variable?
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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