Glossary · The loan itself
Authorized Loan Amount
In short
This is the specific dollar amount approved by the SBA for your 7(a) loan, detailing exactly how much you can borrow. It's stated in the SBA Loan Authorization.
What it means in a deal
The Authorized Loan Amount is the maximum principal amount the SBA guarantees. It's crucial because it dictates the total funds available for your acquisition and related costs. Any changes require an Amended SBA Loan Authorization, which can delay closing. Ensure the amount covers your total project costs.
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 Authorized Loan Amount
- How does a lender request an increase to an authorized 7(a) loan amount after E-Tran approval?
- How does a lender request an increase to an authorized 7(a) loan amount due to unforeseen project cost increases?
- How does a lender resolve an E-Tran error where the authorized loan amount is incorrect after approval but before disbursement?
- What specific documentation is required to formally transition an authorized 7(a) loan from one permissible base rate to another?
- Can an SBA 7(a) loan be repaired if the lender failed to ensure the borrower properly used all loan proceeds as authorized?
- What steps must a lender take in E-Tran if a previously authorized 7(a) loan needs to be cancelled before closing?
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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