Glossary · People and paperwork
Borrower consent
In short
This is the formal agreement from you, the buyer (borrower), to the terms and conditions of the SBA loan. It's legally binding and confirms you understand your obligations.
What it means in a deal
Before closing, you'll sign numerous documents, including the SBA Loan Authorization, which acts as your consent. Ensure you fully understand all covenants and requirements, as breaking them can lead to loan default and recourse.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
SBA Form 1919 — Borrower Information Form
U.S. Small Business Administration · SBA form
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Borrower consent
- Is member or board consent needed for an SBA partner buyout?
- What specific collateral modifications can a lender approve without seeking prior SBA consent?
- Which specific collateral modifications can a lender approve without seeking prior SBA consent?
- Who must provide consent for a business to obtain life insurance on an individual?
- Does the lender need to collect separate consent forms for background checks from non-owner spouses?
- What happens if a seller note on full standby is paid off early without prior lender consent?
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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