Glossary · Doing the deal
Temporary Deferment
In short
A temporary pause in your loan payments, usually for principal and sometimes interest, granted by the lender under specific circumstances. Buyer cares because it can provide crucial breathing room if the business faces unexpected early challenges.
What it means in a deal
If your newly acquired business struggles post-closing due to unforeseen issues, a temporary deferment might be an option. You'd need to negotiate this with your lender, demonstrating the temporary nature of the hardship and a clear plan to resume payments. It's not a given, so have a strong contingency plan.
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 Temporary Deferment
- How does the SBA handle a temporary business closure during the acquisition transition?
- Can a lender approve a deferment period without prior SBA approval?
- What if the business I'm buying has a temporary decline in revenue during the due diligence period?
- If the business I'm buying has a temporary decline in revenue during due diligence, will it kill the deal?
- If the business I'm buying has a temporary decline in revenue during the due diligence period, will it kill the deal?
- Can a lender approve a deferment period for my SBA 7(a) loan without SBA approval?
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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