Glossary · People and paperwork
Note(Promissory note)
In short
The Note is your formal promise to repay the loan. It outlines the principal amount, interest rate, repayment terms, and any specific conditions of your debt to the lender.
What it means in a deal
This is the core legal document establishing your loan obligation. When closing your SBA 7(a) loan, you'll sign the Note. Ensure you understand all its provisions, especially the payment schedule, default clauses, and any prepayment penalties, before signing.
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 Note
- Besides cash and seller notes, what other buyer contributions qualify for equity?
- What is the required duration of a full standby seller note?
- Can a full standby seller note accrue interest during the standby period?
- Is a seller's personal guaranty required for providing a standby note?
- Can a standby seller note accrue or pay interest during the loan?
- How does partial standby treatment affect a seller's note for eligibility?
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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