Glossary · Doing the deal
Unilateral Servicing Authority
In short
A lender's ability to take certain actions regarding an SBA loan without prior SBA approval. This streamlines routine loan administration and speeds up minor adjustments.
What it means in a deal
Preferred Lender Program (PLP) lenders, for instance, have unilateral servicing authority for many actions like deferments or minor loan modifications. This means they don't need to wait for SBA approval, making post-closing adjustments quicker. Understand what actions your lender can take without SBA sign-off, as it impacts flexibility.
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 Unilateral Servicing Authority
- What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- What servicing actions require prior written SBA approval?
- How is the ongoing servicing fee calculated and remitted to the SBA?
- Which servicing actions can a 7(a) lender take without prior SBA approval?
- What servicing actions can a 7(a) lender take 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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