Glossary · People and paperwork
Delegated Lender
In short
A Delegated Lender is authorized by the SBA to make loan decisions without direct SBA review, streamlining the approval process. This often means a faster path to closing for your 7(a) loan.
What it means in a deal
The most common type is a Preferred Lender (PLP). Working with a Delegated Lender can significantly reduce the time from application to SBA Credit Approval. They still must follow all SBA rules, but they have the authority to issue the SBA Loan Authorization themselves. These lenders have demonstrated expertise and a strong track record.
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 Lender
- What collateral servicing actions require prior SBA approval versus those delegated to the lender?
- What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?
- Which SBA lenders are best?
- What types of lenders offer SBA 7(a) loans?
- Do certain types of lenders process SBA 7(a) loans faster?
- How is a lender's 'SBA Preferred Lender' status beneficial for the borrower?
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.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.