Glossary · Doing the deal
Extension
In short
An agreement to prolong a deadline, whether for a loan commitment, due diligence, or other deal milestones. You'll need this if you can't meet original timelines, but it may come with conditions or costs.
What it means in a deal
If your SBA loan authorization's Validity Period is expiring and you're not ready to close, your lender can request an extension from the SBA. This is common but requires justification. For due diligence, ensure your LOI has clear extension clauses, and don't hesitate to use them if you need more time to vet the business.
Official sources
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 Extension
- When is an SBA 7(a) loan authorization typically considered fully expired if no extension has been granted?
- What are the requirements for a lender to obtain an extension of the 90-day E-Tran authorization validity period?
- What steps should a lender take if a borrower with a 7(a) loan requests an extension of the loan maturity date?
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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