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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.

Common questions about PLP

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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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