Glossary · The loan itself
PLP(Preferred Lender Program)
In short
PLP lenders have delegated authority from the SBA to approve loans without prior SBA review, significantly speeding up the approval process. This is a major advantage for buyers.
What it means in a deal
Working with a PLP lender means a faster closing timeline for your SBA 7(a) loan, as they can make credit decisions internally. This is crucial in competitive deals where speed can be a differentiator. Always prioritize a PLP lender for efficiency.
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 PLP
- What does 'Preferred Lender Program' (PLP) status mean for a bank?
- What is a 'Preferred Lender' (PLP) in the context of SBA 7(a) loans?
- What is a 'Preferred Lender' (PLP) for SBA 7(a) loans, and why is it important?
- What is a "Preferred Lender" (PLP) for SBA 7(a) loans, and why does it matter?
- What are the benefits of applying for an SBA 7(a) loan through a Preferred Lender (PLP)?
- How quickly can an SBA 7(a) loan be approved if my lender is a Preferred Lender Program (PLP) participant?
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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