{"ok":true,"canonical_url":"https://dealroom.so/glossary/participating-lender","api_url":"https://dealroom.so/api/public/glossary/participating-lender","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":"participating-lender","term":"Participating Lender","group":"People and paperwork","definition":"This is a financial institution, like a bank, authorized by the SBA to make 7(a) loans. They originate and service the loan, with the SBA guaranteeing a portion.","what_it_means":"Not all banks offer SBA loans; you need to find one that is an approved participating lender. Preferred Lenders (PLP) have delegated authority from the SBA, which can streamline the approval process and shorten closing times for your deal.","url":"https://dealroom.so/glossary/participating-lender","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":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"plp-lender","term":"PLP lender","url":"https://dealroom.so/glossary/plp-lender"},{"slug":"credit-decision","term":"Credit Decision","url":"https://dealroom.so/glossary/credit-decision"},{"slug":"business-broker","term":"Business broker","url":"https://dealroom.so/glossary/business-broker"}],"related_questions":[{"question":"What types of lenders offer SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/what-types-of-lenders-offer-sba-7-a-loans"},{"question":"Do certain types of lenders process SBA 7(a) loans faster?","url":"https://dealroom.so/sba-loans/basics/do-certain-types-of-lenders-process-sba-7-a-loans-faster"},{"question":"How is a lender's 'SBA Preferred Lender' status beneficial for the borrower?","url":"https://dealroom.so/sba-loans/basics/how-is-a-lender-s-sba-preferred-lender-status-beneficial-for-the-borrower"},{"question":"Why do lenders typically prefer larger amounts for SBA 7(a) loans?","url":"https://dealroom.so/sba-loans/basics/why-do-lenders-typically-prefer-larger-amounts-for-sba-7-a-loans"},{"question":"Does the SBA tell lenders exactly what interest rate they must charge?","url":"https://dealroom.so/sba-loans/basics/does-the-sba-tell-lenders-exactly-what-interest-rate-they-must-charge"},{"question":"What is the primary purpose of the Universal Purchase Package (UPP) for lenders?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-the-universal-purchase-package-upp-for-lenders"}]},"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 — Participating Lender","url":"https://dealroom.so/glossary/participating-lender","source_type":"DealRoom Data"}}