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Glossary · The loan itself

Loan Commitment(Commitment Letter)

In short

This is a formal, written agreement from a lender to provide you with a loan, detailing the terms, conditions, and requirements you must meet before closing. It's a critical step after underwriting.

What it means in a deal

Once your loan is approved, the lender issues a Loan Commitment letter. This document is legally binding on the lender, assuming you satisfy all the stipulated conditions by the closing date. Review it carefully with your advisor to understand all requirements before you sign.

Official sources

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.

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Common questions about Loan Commitment

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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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