Glossary · The loan itself
Loan Deferment Period
In short
This is an initial period, typically at the start of your loan, during which you only pay interest, or sometimes no payments are due at all. Principal payments are postponed.
What it means in a deal
Some SBA loans may include a short deferment period, usually a few months, allowing you to establish operations before full principal and interest payments begin. While this provides initial cash flow relief, remember that your principal balance doesn't decrease during this time. Confirm any deferment terms with your lender.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Loan Deferment Period
- Can a lender approve a deferment period without prior SBA approval?
- Can a lender approve a deferment period for my SBA 7(a) loan without SBA approval?
- When can a lender approve a deferment period for a 7(a) loan without prior SBA approval?
- Can a lender extend the payment deferment period on a 7(a) loan without prior SBA approval?
- Can a lender approve a deferment period for an SBA 7(a) loan without prior SBA approval?
- When can a lender approve a deferment period without prior SBA approval for a 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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