Glossary · People and paperwork
SBA Preferred Lender(PLP Lender)
In short
A Preferred Lender is a bank authorized by the SBA to make and approve 7(a) loans without prior SBA review, significantly speeding up the loan process.
What it means in a deal
Working with a Preferred Lender (PLP) streamlines your loan application. They have delegated authority from the SBA to underwrite and close loans, meaning less bureaucracy and faster decisions. These lenders are often the best choice for business acquisitions.
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 SBA Preferred Lender
- How is a lender's 'SBA Preferred Lender' status beneficial for the borrower?
- What does 'Preferred Lender Program' (PLP) status mean for a bank?
- What is the role of an "SBA Preferred Lender" in the application process?
- Does working with a 'Preferred Lender' speed up the SBA 7(a) loan process?
- What is an 'SBA Preferred Lender,' and why does it matter for my application?
- What is a 'Preferred Lender' (PLP) in the context of SBA 7(a) loans?
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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