Glossary · Doing the deal
Material Deviation
In short
This is a significant change from what was originally presented or approved in your SBA loan application or authorization.
What it means in a deal
A material deviation could involve a change in ownership structure, a substantial shift in the use of proceeds, or major undisclosed liabilities. Any such deviation from your SBA Loan Authorization or application can jeopardize your loan's guarantee, so disclose everything upfront and get lender approval for any changes.
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 Material Deviation
- What are the consequences if SBA Form 1919 contains material omissions or misrepresentations?
- Can a lender approve a material change to collateral without prior SBA approval?
- What constitutes a 'material adverse change' that could affect my loan approval after application?
- Which material servicing actions can a 7(a) lender take without prior SBA approval?
- How does an unapproved material servicing action impact the SBA's 7(a) loan guaranty?
- How does a lender correct a material error in the E-Tran submission after receiving an authorization?
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
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.