Glossary · Doing the deal
Loan origination
In short
Loan origination is the entire process from when you first apply for a loan until the funds are disbursed. It involves application, underwriting, approval, and closing.
What it means in a deal
As a buyer, you'll navigate the origination process with your lender, providing financial documents, business plans, and personal information for underwriting. Be prepared for extensive due diligence. A smooth origination depends on clear communication and prompt responses to all requests to avoid delays to the closing.
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 Loan origination
- What specific actions by a lender during loan origination would typically lead to a guaranty denial?
- Can the lender charge their own separate processing or origination fees for an SBA 7(a) loan?
- How does the SBA determine if a lender has met the "prudent lending standards" requirement during loan origination?
- Can I negotiate the lender's origination or packaging fee for my SBA 7(a) business acquisition loan?
- What are common eligibility failures during origination that lead to an outright denial of the SBA guaranty?
- What are the most frequent reasons the SBA denies a 7(a) guaranty purchase request due to lender errors during origination?
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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