For SBA lenders
Short answer
A lender must submit a written request to the SBA for an extension of the 90-day authorization validity, providing a valid reason and an anticipated new closing date.
If a loan cannot be fully disbursed within the initial 90-day authorization period, the lender must submit a written request to the SBA for an extension. The request must clearly state the reason for the delay (e.g., unexpected real estate closing delays, additional due diligence) and provide a firm date by which the loan is expected to close. Extensions are not automatic and are granted at the SBA's discretion.
A lender's 7(a) authorization is set to expire on October 1st. Due to protracted negotiations with the seller on a lease agreement, the closing is delayed. On September 20th, the lender submits an extension request to the SBA, explaining the delay and requesting a new expiration date of November 30th.
Insider move
Lenders should proactively monitor authorization expiration dates and request extensions well in advance. Repeated or poorly justified extension requests can raise red flags with the SBA and may result in denial, requiring a reapplication.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Standard 7(a) Authorization File Library
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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