Glossary · People and paperwork
Lender's Credit Authority(LCA)
In short
This refers to the specific dollar amount a lender is authorized to approve for SBA loans under their delegated authority without prior SBA review. It speeds up the approval process.
What it means in a deal
Lenders with Preferred Lender Program (PLP) status have delegated authority, meaning they can approve loans up to their Lender's Credit Authority without sending every application to the SBA for review. This significantly reduces closing times for your 7(a) loan. Work with a PLP lender for a faster process.
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 Lender's Credit Authority
- What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?
- How does a lender verify equity injection from a borrower's personal credit card cash advance?
- What specific documentation is required for a lender's independent credit analysis under prudent lending standards?
- What are the SBA's current policy expectations for documentation of a lender's independent credit analysis for 7(a) Small Loans?
- What is the role of the lender's credit committee in the SBA 7(a) loan approval process?
- What is the importance of a lender's detailed credit memorandum in the 7(a) loan approval process?
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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