Glossary · The loan itself
Lump sum disbursement
In short
This means the entire loan amount is paid out to the borrower or seller in a single payment, rather than in installments. Most SBA 7(a) acquisition loans are disbursed this way.
What it means in a deal
For a business acquisition, your SBA 7(a) loan funds are typically provided as a "lump sum disbursement" at closing. The funds go directly to the seller or an escrow agent, along with your "equity injection" and any "seller note," to complete the purchase. This differs from construction loans with staggered disbursements.
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 Lump sum disbursement
- What documentation is required to verify equity injection from a newly inherited sum of money?
- After SBA 7(a) loan approval, what's the typical timeframe for closing and disbursement?
- How does a lender resolve an E-Tran error where the authorized loan amount is incorrect after approval but before disbursement?
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.