Glossary · The loan itself
Loan Modification
In short
This is a change to the original terms of your loan, such as the interest rate, payment schedule, or maturity date. It's typically done to help a borrower facing financial hardship.
What it means in a deal
If your business experiences unexpected challenges after acquiring it with an SBA 7(a) loan, you might request a Loan Modification from your lender. This could involve an interest-only payment period or a deferred principal payment. These changes require SBA approval and are not guaranteed, but they can be crucial for business survival.
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.
Related terms
Common questions about Loan Modification
- When is an E-Tran modification specifically required for changes in collateral post-authorization?
- When is an E-Tran modification required for a final loan amount change less than $5,000?
- When must a lender obtain an E-Tran modification for changes to a 7(a) loan's terms?
- When is an E-Tran modification required for changes to a 7(a) loan's terms after initial authorization?
- When is an E-Tran modification required if the final SBA 7(a) loan amount changes slightly after initial authorization?
- When can a lender approve a short-term deferment or modification of a 7(a) loan's payment terms without prior SBA consent?
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.