Glossary · People and paperwork
Delegation of Authority
In short
This is when the SBA authorizes certain lenders (PLP lenders) to make final loan approval decisions without prior SBA review. It speeds up the loan process significantly.
What it means in a deal
Lenders with "Preferred Lender Program" (PLP) status have delegation of authority. This means they can underwrite and approve SBA loans themselves, only submitting the documentation to the SBA after approval for guaranty. Working with a PLP lender usually results in a much faster closing timeline for your acquisition.
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 Delegation of Authority
- What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?
- Can I use a secured personal line of credit as part of my equity injection?
- Can a seller-financed portion of the sale be considered part of my equity injection?
- Can a buyer's assumption of existing business debt count as part of the equity injection?
- Can I use funds from a personal line of credit as part of my equity injection?
- Can funds from an unsecured personal line of credit be considered part of my equity injection?
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.