For SBA lenders
Short answer
Yes, lenders generally have the authority to grant limited deferments of principal and interest without prior SBA approval, provided specific conditions and duration limits are met and documented.
The SBA grants lenders certain unilateral servicing authorities to allow for efficient loan management. Deferments are typically permitted for short periods (e.g., up to six months) without prior SBA approval, provided the lender documents the borrower's temporary inability to pay and the deferment is in the best interest of the government.
A borrower experiences a temporary cash flow crunch due to a major equipment repair. The lender, after reviewing the borrower's financials, grants a three-month deferment of principal and interest, documenting the reason and the expected repayment ability.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Servicing and Liquidation Actions 7(a) Lender Matrix
SOP 50 57 - 7(a) Loan Servicing and Liquidation
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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