Glossary · People and paperwork
Truth in Lending Act(TILA)
In short
A federal law requiring lenders to disclose loan terms and costs clearly. This ensures you receive consistent, transparent information to compare loan offers.
What it means in a deal
While primarily focused on consumer loans, TILA's principles of clear disclosure impact how commercial lenders present loan terms, even for SBA 7(a) loans. Ensure your lender provides a comprehensive breakdown of all costs, interest rates, and repayment schedules in an easily understandable format before you commit.
Related terms
Common questions about Truth in Lending Act
- Can my personal savings account act as collateral for an SBA 7(a) loan?
- How does the SBA assess "prudent lending standards" in 7(a) loan underwriting?
- How does the 'not engaged in lending' rule apply to a loan applicant?
- What does 'prudent lending standards' mean in the context of SBA 7(a) loans?
- How does the SBA typically value goodwill in a business acquisition for lending purposes?
- How does a lender document adherence to prudent lending standards in the underwriting credit memo?
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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