Glossary · Doing the deal
Prior SBA approval
In short
This means the SBA must review and approve certain aspects of your loan or business structure before the lender can proceed. It's a key step for unusual situations or specific changes.
What it means in a deal
While most 7(a) loans are processed by Preferred Lenders under delegated authority, some scenarios, like certain changes in business structure or specific types of collateral, require direct SBA review. Your lender will flag these instances and guide you through the submission process to the SBA for their explicit approval.
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 Prior SBA approval
- What servicing actions require prior written SBA approval?
- Can a lender approve a deferment period without prior SBA approval?
- Which servicing actions can a 7(a) lender take without prior SBA approval?
- Can a lender approve a material change to collateral without prior SBA approval?
- What servicing actions can a 7(a) lender take without prior SBA approval?
- What specific types of collateral releases can a lender execute without prior SBA approval?
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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