SBA additional payment to principal?

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May 09, 2025

by a searcher from George Mason University in Los Angeles, CA, USA

Question directed to lenders or SBA borrowers: Found out recently from my bank that I can't really make additional "principal only" payments to my SBA loan due to SBA loan guidelines. As such, any payment I make in excess of my monthly payment will still go to a split between interest/principal etc. That being said, is there an ideal period in the 10 year window where it would be more advantageous to pay the additional payments due to amortization curve being more tilted towards principal? Or does this not matter?
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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
What type of SBA loan do you have? I would be happy to get on a call to discuss. Just so you are aware, the SBA guidelines are pretty clear how lenders need to process payments. You can reach me here or directly at redacted
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Reply by a searcher
in London, UK
can you explain the mechanism of how the additional payment will be partially used to pay off interest?
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