Glossary · People and paperwork
Statutory authority
In short
This refers to the power granted by law to a government agency, like the SBA, to create and enforce rules. It's why their regulations apply to your loan.
What it means in a deal
The SBA operates under statutory authority granted by Congress, which allows it to establish rules for programs like the 7(a) loan. This means the SBA's regulations (like those in 13 CFR Part 120 or SOP 50 10) are legally binding. You must comply with these rules to get and maintain your SBA loan.
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 Statutory authority
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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