Glossary · Doing the deal
Unauthorized Modification
In short
This refers to changes made to an SBA loan's terms or conditions without the required SBA approval. Such changes can void the SBA guaranty and leave the lender exposed.
What it means in a deal
If a lender modifies your loan terms post-closing without SBA's explicit consent, it can nullify the SBA's promise to cover part of the loss. This is a big risk for the lender, so they'll be very careful. As a buyer, ensure all deal changes impacting the loan are properly documented and approved.
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 Unauthorized Modification
- When is an E-Tran modification specifically required for changes in collateral post-authorization?
- When is an E-Tran modification required for a final loan amount change less than $5,000?
- When must a lender obtain an E-Tran modification for changes to a 7(a) loan's terms?
- When is an E-Tran modification required for changes to a 7(a) loan's terms after initial authorization?
- What are the precise conditions under which a lender must submit an E-Tran modification request versus a new application?
- When is an E-Tran modification required if the final SBA 7(a) loan amount changes slightly after initial authorization?
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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