Glossary · People and paperwork
Delegated Action
In short
A delegated action is a decision made by a Preferred Lender Program (PLP) lender without prior SBA review. This speeds up the loan approval process, as the lender has the authority to approve the SBA guarantee directly.
What it means in a deal
Most 7(a) loans are processed as delegated actions, meaning your lender makes the final call on eligibility and creditworthiness. This is why choosing an experienced PLP lender is crucial; they have the expertise and authority to move quickly. You still need to provide complete and accurate information to them.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Delegated Action
- What collateral servicing actions require prior SBA approval versus those delegated to the lender?
- What specific actions constitute an 'unapproved material servicing action' that could lead to a 7(a) guaranty repair or denial?
- What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?
- How does an unapproved material servicing action impact the SBA's 7(a) loan guaranty?
- When can a lender request prior approval from the SBA for a significant servicing action?
- What information must a lender provide to the SBA when requesting prior approval for a significant servicing action?
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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