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Glossary · The loan itself

Loan Disbursement(Funding)

In short

This is when the lender releases the loan funds to the borrower or third parties for the approved Use of Proceeds. It's the moment the loan actually funds.

What it means in a deal

For an SBA acquisition, the lender disburses funds at closing based on the SBA Loan Authorization. Ensure all conditions precedent are met, and funds are directed to the correct parties, such as the seller, escrow, or for working capital.

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 Disbursement

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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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