Glossary · The loan itself
Payment Deferment Period
In short
A temporary period during which the borrower is not required to make principal or interest payments on a loan. This can offer a buffer during the initial takeover.
What it means in a deal
Some SBA loans may allow for an initial 'deferment period' where you only pay interest, or no payments at all, for a few months after closing. This can help preserve working capital as you take over the business. Ensure you understand the terms and when full payments begin.
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 Payment Deferment Period
- Can a lender extend the payment deferment period on a 7(a) loan without prior SBA approval?
- Can a lender approve a deferment period without prior SBA approval?
- Can a lender approve a deferment period for my SBA 7(a) loan without SBA approval?
- When can a lender approve a deferment period for a 7(a) loan without prior SBA approval?
- Can a lender approve a deferment period for an SBA 7(a) loan without prior SBA approval?
- When can a lender approve a deferment period without prior SBA approval for a 7(a) loan?
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.