{"ok":true,"canonical_url":"https://dealroom.so/glossary/delegation-of-authority","api_url":"https://dealroom.so/api/public/glossary/delegation-of-authority","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"delegation-of-authority","term":"Delegation of Authority","group":"People and paperwork","definition":"This is when the SBA authorizes certain lenders (PLP lenders) to make final loan approval decisions without prior SBA review. It speeds up the loan process significantly.","what_it_means":"Lenders with \"Preferred Lender Program\" (PLP) status have delegation of authority. This means they can underwrite and approve SBA loans themselves, only submitting the documentation to the SBA after approval for guaranty. Working with a PLP lender usually results in a much faster closing timeline for your acquisition.","url":"https://dealroom.so/glossary/delegation-of-authority","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"plp-lender","term":"PLP lender","url":"https://dealroom.so/glossary/plp-lender"},{"slug":"delegated-authority","term":"Delegated authority","url":"https://dealroom.so/glossary/delegated-authority"},{"slug":"origination","term":"Origination","url":"https://dealroom.so/glossary/origination"},{"slug":"underwriting","term":"Underwriting","url":"https://dealroom.so/glossary/underwriting"}],"related_questions":[{"question":"What factors allow a lender to use their delegated authority (e.g., Preferred Lender status) to speed up SBA loan approval?","url":"https://dealroom.so/sba-7a/questions/what-factors-allow-a-lender-to-use-their-delegated-authority-e-g-preferred-lender-status-t"},{"question":"Can I use a secured personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-secured-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can a seller-financed portion of the sale be considered part of my equity injection?","url":"https://dealroom.so/sba-loans/basics/can-a-seller-financed-portion-of-the-sale-be-considered-part-of-my-equity-injection"},{"question":"Can a buyer's assumption of existing business debt count as part of the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-buyer-s-assumption-of-existing-business-debt-count-as-part-of-the-equity-injection"},{"question":"Can I use funds from a personal line of credit as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-personal-line-of-credit-as-part-of-my-equity-injection"},{"question":"Can funds from an unsecured personal line of credit be considered part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-funds-from-an-unsecured-personal-line-of-credit-be-considered-part-of-my-equity-inject"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Delegation of Authority","url":"https://dealroom.so/glossary/delegation-of-authority","source_type":"DealRoom Data"}}