Glossary · The loan itself
Loan authorization
In short
The official document from the SBA to your lender, approving the loan and outlining all the specific terms, conditions, and requirements. Buyers care because it's the definitive legal document governing your SBA loan, detailing everything you must comply with.
What it means in a deal
This document is issued after your loan receives SBA approval and before closing. It details the loan amount, interest rate, repayment terms, collateral requirements, and any specific conditions you or the business must meet. Review it carefully with your attorney to ensure all conditions are understood and can be met.
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 Loan authorization
- When is an amended SBA loan authorization required after closing?
- What is an SBA *loan authorization* document, and why is it important?
- What is the average timeframe for a typical SBA 7(a) loan closing after authorization?
- How does a lender cancel a 7(a) loan authorization in E-Tran before closing?
- What specific data fields in E-Tran are critical for accurate 7(a) loan authorization generation?
- How does a lender process a 7(a) loan authorization amendment in the E-Tran system?
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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