{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-if-a-loan-authorization-requires-a-specific-condition-precedent-to-closing-that-is-no","api_url":"https://dealroom.so/api/public/questions/what-if-a-loan-authorization-requires-a-specific-condition-precedent-to-closing-that-is-no","question":"What if a loan authorization requires a specific condition precedent to closing that is not met?","topic":"E-Tran & authorization","audience":"lender","bot_mode":"lender","short_answer":"If a condition precedent to closing specified in the SBA loan authorization is not met, the lender cannot close and disburse the loan until the condition is satisfied or a modification is approved by the SBA.","rule":"The SBA loan authorization outlines all terms, conditions, and requirements for the loan, including conditions that must be met prior to closing. These conditions are binding, and proceeding without satisfying them or obtaining a modification can lead to a guaranty denial or repair.","example":"An authorization requires the borrower to provide proof of a $100,000 equity injection prior to closing. If, at the closing table, the borrower only has $75,000, the lender cannot close the loan. They must either wait for the full injection or seek SBA approval for a modification to the authorization.","what_lenders_check":"Lenders must meticulously track and ensure all conditions precedent are met before closing. Any deviation requires formal modification approval from the SBA, highlighting the importance of clear communication and documentation.","required_facts":["Condition precedent","Loan authorization","Not met","Cannot close","SBA modification"],"source_families":["Standard 7(a) Authorization File Library","SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"Standard 7(a) Authorization File Library","url":"https://www.sba.gov/document/support-standard-7a-authorization-file-library"},{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"What specific data fields in E-Tran are critical for accurate 7(a) loan authorization generation?","url":"https://dealroom.so/for-lenders/questions/what-specific-data-fields-in-e-tran-are-critical-for-accurate-7-a-loan-authorization-gener"},{"question":"How does a lender request an increase to an authorized 7(a) loan amount after E-Tran approval?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-increase-to-an-authorized-7-a-loan-amount-after-e-tran-approv"},{"question":"Under what specific circumstances is a lender permitted to make minor modifications to the 7(a) loan authorization without requesting a formal amendment from SBA?","url":"https://dealroom.so/for-lenders/questions/under-what-specific-circumstances-is-a-lender-permitted-to-make-minor-modifications-to-the"},{"question":"What are the specific requirements for a lender to obtain an SBA loan authorization for a 7(a) loan, particularly regarding E-Tran submission?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-a-lender-to-obtain-an-sba-loan-authorization-for-a-"},{"question":"What is the correct procedure for a lender to request a material amendment to an already authorized 7(a) loan in E-Tran?","url":"https://dealroom.so/for-lenders/questions/what-is-the-correct-procedure-for-a-lender-to-request-a-material-amendment-to-an-already-a"},{"question":"What is the maximum number of times a lender can request an amendment to a 7(a) loan authorization via E-Tran?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-number-of-times-a-lender-can-request-an-amendment-to-a-7-a-loan-author"}],"related_terms":[{"term":"Condition Precedent to Closing","url":"https://dealroom.so/glossary/condition-precedent-to-closing"},{"term":"Condition precedent to funding","url":"https://dealroom.so/glossary/condition-precedent-to-funding"},{"term":"Conditions precedent to closing","url":"https://dealroom.so/glossary/conditions-precedent-to-closing"},{"term":"Closing condition","url":"https://dealroom.so/glossary/closing-condition"},{"term":"Amendment to Loan Authorization","url":"https://dealroom.so/glossary/amendment-to-loan-authorization"},{"term":"Industry-Specific Metric","url":"https://dealroom.so/glossary/industry-specific-metric"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/what-if-a-loan-authorization-requires-a-specific-condition-precedent-to-closing-that-is-no","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}