Glossary · Doing the deal
Delegated authority
In short
Delegated authority is a status granted by the SBA to certain lenders, allowing them to underwrite and approve SBA loans without prior SBA review. This significantly speeds up the loan approval process.
What it means in a deal
Lenders with delegated authority, like Preferred Lenders (PLP lenders), can make loan decisions faster because they don't send every application to the SBA for approval. This means your loan application moves through underwriting quicker, which is crucial in a competitive deal environment where time is of the essence.
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 authority
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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