For SBA lenders
Short answer
Yes, a delegated authority (PLP) lender can approve short-term deferments of principal and interest (P&I) payments for a maximum of six months without prior SBA approval, provided specific conditions are met.
The SBA allows PLP lenders to unilaterally approve certain deferments to assist borrowers experiencing temporary financial hardship, provided the deferment is short-term, the loan remains current, and the lender documents the reason and improved ability to repay. The specific terms are detailed in the Servicing and Liquidation Actions 7(a) Lender Matrix.
A borrower experiences a temporary cash flow crunch due to a major customer delay. A PLP lender, after reviewing financials and confirming the issue is temporary, can approve a 3-month P&I deferment without contacting the SBA, documenting the action in the loan file.
Insider move
Lenders must strictly adhere to the conditions and limits outlined in the Servicing Matrix. Improperly approved deferments or those exceeding delegated authority can result in a guaranty repair or denial during a purchase request.
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.
More on servicing actions without sba approval
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