Glossary · People and paperwork
Validity Period
In short
The timeframe during which an offer, like a loan commitment or a seller's proposal, remains active and legally binding. Missing this deadline means the offer might expire, forcing renegotiation or cancellation.
What it means in a deal
A lender's loan authorization or commitment letter will have a validity period, typically 90 days, by which the loan must close. If you can't close within that time, you'll need an Extension. Pay close attention to these dates for appraisals, environmental reports, and especially your LOI to the seller.
Official sources
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 Validity Period
- What are the requirements for a lender to obtain an extension of the 90-day E-Tran authorization validity period?
- What specific data points, beyond the loan amount, are most critical for matching the final executed loan documents to ensure guaranty validity?
- Can a lender approve a deferment period without prior SBA approval?
- What is the typical repayment period for an SBA 7(a) loan?
- Can a full standby seller note accrue interest during the standby period?
- What is the usual repayment period for an SBA 7(a) loan?
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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