For SBA lenders
Short answer
A lender must request an amendment to the Loan Authorization via E-Tran to correct the authorized loan amount. Disbursing a loan with an incorrect amount relative to the authorization can jeopardize the guaranty.
The E-Tran authorization dictates the terms and conditions of the SBA guaranty. If the loan amount is incorrect, the lender cannot simply disburse a different amount. An amendment is required to align the authorization with the intended loan terms, ensuring the guaranty applies to the correct principal amount.
A lender receives an E-Tran authorization for $750,000, but during closing prep, realizes the correct loan amount should be $700,000. The lender must submit an E-Tran amendment request to reduce the authorized amount to $700,000 before closing and disbursing the loan.
Insider move
Lenders must ensure that the final disbursed loan amount precisely matches the E-Tran authorization. Discrepancies are a significant risk and can lead to guaranty repair or denial during purchase review.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
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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