Glossary · The loan itself
Interest Payment
In short
This is the portion of your loan payment that goes to the lender as their fee for letting you borrow money. It's the cost of financing your acquisition.
What it means in a deal
Every month, your SBA 7(a) loan payment consists of both principal and interest. The interest portion is calculated based on the outstanding principal balance and your variable interest rate. Understand how this changes over the loan term.
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 Payment
- If a seller note is structured with deferred principal payments but immediate interest payments, does it still qualify as full standby?
- Under what specific circumstances can a lender approve an interest-only payment period for a 7(a) loan without prior SBA approval?
- Can a partial standby seller note include a provision for interest payments during the standby period?
- Can the seller receive interest payments on a fully subordinated seller note during the SBA loan term?
- Can a seller note with deferred payments but no interest count as full standby for equity injection?
- Can a 7(a) lender approve a deferment of principal and interest payments without prior SBA approval?
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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