{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-consequence-if-a-7-a-loan-is-not-closed-and-disbursed-within-the-specified-tim","api_url":"https://dealroom.so/api/public/questions/what-is-the-consequence-if-a-7-a-loan-is-not-closed-and-disbursed-within-the-specified-tim","question":"What is the consequence if a 7(a) loan is not closed and disbursed within the specified timeframe of its SBA Authorization?","topic":"E-Tran & Authorization","audience":"lender","bot_mode":"lender","short_answer":"If a 7(a) loan is not closed and disbursed within the authorization's validity period, the authorization expires, requiring a new application or extension from the SBA, potentially impacting eligibility or terms.","rule":"SBA Loan Authorizations have an expiration date to ensure timely loan closings and compliance with current program rules. If a loan is not closed by this date, the authorization becomes invalid. Lenders must either seek an extension from the SBA (if permitted) or reapply, which could subject the loan to new eligibility criteria or updated terms.","example":"An SBA 7(a) loan authorization is issued on January 1st with a 90-day validity, expiring March 31st. Due to unforeseen delays, the loan is not ready to close until April 15th. The lender must request an extension from the SBA or risk the authorization expiring, potentially leading to reapplication.","what_lenders_check":"Lenders must actively manage the loan closing process to ensure all conditions are met and the loan is disbursed within the authorization's validity period, preventing expiration and additional administrative burden or eligibility risks.","required_facts":["Loan authorization","Validity period","Expiration","Closing timeframe","Disbursement"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"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 are the consequences if the NAICS code entered into E-Tran differs from the primary business activity in the loan narrative?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-if-the-naics-code-entered-into-e-tran-differs-from-the-primary-b"},{"question":"How does a lender correct a material error in E-Tran after the 7(a) loan has received an SBA authorization?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-correct-a-material-error-in-e-tran-after-the-7-a-loan-has-received-an-sb"},{"question":"What specific data fields on SBA Form 1919 are critical for consistency with E-Tran for a 7(a) application?","url":"https://dealroom.so/for-lenders/questions/what-specific-data-fields-on-sba-form-1919-are-critical-for-consistency-with-e-tran-for-a-"},{"question":"What documentation is required to amend a 7(a) loan authorization for a change in project costs?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-amend-a-7-a-loan-authorization-for-a-change-in-project-c"},{"question":"When must a lender obtain an E-Tran modification for changes to a 7(a) loan's terms?","url":"https://dealroom.so/for-lenders/questions/when-must-a-lender-obtain-an-e-tran-modification-for-changes-to-a-7-a-loan-s-terms"},{"question":"What is the primary purpose of the E-Tran system for a 7(a) lender, beyond loan application submission?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-the-e-tran-system-for-a-7-a-lender-beyond-loan-application-"}],"related_terms":[{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"Standard 7(a) loan","url":"https://dealroom.so/glossary/standard-7-a-loan"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) Small Loan","url":"https://dealroom.so/glossary/7-a-small-loan"},{"term":"Variable-rate 7(a) loan","url":"https://dealroom.so/glossary/variable-rate-7-a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"}],"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-is-the-consequence-if-a-7-a-loan-is-not-closed-and-disbursed-within-the-specified-tim","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."]}