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Glossary · The loan itself

Loan Repayment

In short

Loan repayment is the process of paying back the principal and interest on your SBA loan according to the agreed-upon schedule. Consistent repayment is critical to avoid default.

What it means in a deal

Your SBA 7(a) loan will have a fixed or variable interest rate and an amortization schedule dictating monthly principal and interest payments. Ensure your business's projected cash flow comfortably covers these payments, as demonstrated by your debt service coverage ratio. Missing payments can lead to default and calls on your personal guarantee.

Common questions about Loan Repayment

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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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