Glossary · The loan itself
Loan Instruments
In short
These are the legal documents that define the terms of your loan, including the promissory note, security agreements, and guaranty agreements. They legally bind you to the loan's repayment.
What it means in a deal
Before closing, your attorney must review all loan instruments carefully. Understand every covenant, collateral requirement, and personal obligation. These documents dictate your responsibilities and the lender's rights throughout the loan's life.
Related terms
Common questions about Loan Instruments
- 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?
- Is there a minimum loan amount for an SBA 7(a) loan program?
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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