Glossary · The loan itself
Loan Acceleration
In short
This is a clause in your loan agreement that allows the lender to demand immediate repayment of the entire outstanding loan balance if you default on the terms. It's a serious consequence of non-compliance.
What it means in a deal
Loan acceleration is triggered by events of default, such as missing payments, breaching loan covenants, or providing false information. If your lender accelerates the loan, you must pay the full balance immediately or face liquidation of collateral and potential personal guarantee enforcement. Always adhere strictly to your loan agreement terms.
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 Loan Acceleration
- Can a seller note on full standby have an acceleration clause if the business defaults on the SBA loan?
- Does an SBA loan have better terms than a regular bank loan?
- What is the minimum loan amount for an SBA 7(a) loan?
- What is the maximum loan amount for an SBA 7(a) loan?
- Is there a typical average loan size for an SBA 7(a) loan?
- How is the maximum loan amount for an SBA 7(a) loan determined?
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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