{"ok":true,"canonical_url":"https://dealroom.so/sba-loans/basics/what-is-an-sba-loan-authorization-document-and-why-is-it-important","api_url":"https://dealroom.so/api/public/questions/what-is-an-sba-loan-authorization-document-and-why-is-it-important","question":"What is an SBA *loan authorization* document, and why is it important?","topic":"Loan Documentation","audience":"new","bot_mode":"buyer","short_answer":"The SBA Loan Authorization is the official document that outlines all the terms, conditions, and requirements of your specific SBA 7(a) loan, provided by the lender after approval.","rule":"This legally binding document details the loan amount, interest rate, repayment schedule, collateral requirements, use of proceeds, conditions of disbursement, and any specific covenants. Both the borrower and lender must adhere to its terms.","example":"After a bank approves a $1 million SBA 7(a) loan, they issue a Loan Authorization specifying a 10-year term, variable interest rate (Prime + 2.75%), and that funds must be used for a business acquisition and working capital.","what_lenders_check":"Lenders ensure the Loan Authorization accurately reflects the approved terms and conditions, and that the borrower fully understands and agrees to all covenants before closing. It serves as the master legal document for the loan.","required_facts":["Official Document","Loan Terms","Conditions","Requirements","Legal Agreement","Borrower/Lender Adherence"],"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":[],"related_terms":[{"term":"SBA Loan Authorization","url":"https://dealroom.so/glossary/sba-loan-authorization"},{"term":"Employment authorization document","url":"https://dealroom.so/glossary/employment-authorization-document"},{"term":"SBA Authorization","url":"https://dealroom.so/glossary/sba-authorization"},{"term":"Loan document","url":"https://dealroom.so/glossary/loan-document"},{"term":"Amended SBA Loan Authorization","url":"https://dealroom.so/glossary/amended-sba-loan-authorization"},{"term":"Loan authorization","url":"https://dealroom.so/glossary/loan-authorization"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-loans/basics/what-is-an-sba-loan-authorization-document-and-why-is-it-important","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."]}