Glossary · Doing the deal
Material Modification
In short
A significant change to the terms or conditions of an SBA loan after it's been authorized or disbursed. These changes usually require SBA approval.
What it means in a deal
After your loan is authorized or closed, any substantial changes, like deferring payments or altering collateral, are considered a material modification. Your lender must seek SBA approval for these. Understand that such changes are not automatic and can impact your loan's standing.
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 Material Modification
- When is an E-Tran modification specifically required for changes in collateral post-authorization?
- When is an E-Tran modification required for a final loan amount change less than $5,000?
- When must a lender obtain an E-Tran modification for changes to a 7(a) loan's terms?
- When is an E-Tran modification required for changes to a 7(a) loan's terms after initial authorization?
- What are the precise conditions under which a lender must submit an E-Tran modification request versus a new application?
- When is an E-Tran modification required if the final SBA 7(a) loan amount changes slightly after initial 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.
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