Glossary · People and paperwork
Non-Delegated Lender
In short
A lender that must send all their SBA loan applications directly to the SBA for review and final approval. This process typically takes longer than with a delegated lender.
What it means in a deal
If your lender isn't a Preferred Lender (PLP) or SBA Express lender, they're non-delegated. This means the SBA must approve the loan themselves, adding weeks to your timeline. Understand this distinction upfront to set realistic expectations for your closing schedule.
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 Non-Delegated Lender
- What collateral servicing actions require prior SBA approval versus those delegated to the lender?
- 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 the lawful permanent resident status of a non-citizen applicant?
- What is the lender's responsibility regarding environmental due diligence for non-real estate collateral?
- Can I use a loan from a non-SBA lender as part of my equity injection?
- How does a lender verify the full standby status of a non-SBA third-party debt?
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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