Glossary · The loan itself
Loan Terms
In short
The specific conditions and repayment schedule of your SBA loan, including interest rate, maturity, and payment frequency. These terms directly dictate your monthly debt service and overall cost of borrowing.
What it means in a deal
You'll review these in the commitment letter and final loan agreement. Pay close attention to the interest rate (variable or fixed), amortization schedule, and any prepayment penalties. Understand how these terms impact your cash flow and the total cost of the loan over its life.
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 Terms
- What is an SBA 7(a) loan in simple terms?
- What exactly is an SBA 7(a) loan, in simple terms?
- Does an SBA loan have better terms than a regular bank loan?
- What are the typical repayment terms for an SBA 7(a) loan?
- What are the longest possible repayment terms for an SBA 7(a) loan?
- Does the SBA set all the specific loan terms like interest rates and repayment?
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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