For SBA lenders
Short answer
For a deferment without SBA approval, the lender must document the borrower's temporary inability to pay, the deferment terms (up to 6 months), and demonstrate that it is in the best interest of the government and borrower.
The Servicing and Liquidation Actions 7(a) Lender Matrix allows lenders to approve certain deferments without prior SBA approval. These are generally for temporary financial hardship, limited in duration (e.g., up to 6 months), and must be well-documented in the loan file, demonstrating a reasonable expectation of improved financial condition after the deferment.
A borrower experiences a temporary revenue dip due to unexpected road construction near their business. The lender, without prior SBA approval, grants a 3-month deferment. The lender would document the cause of hardship, cash flow projections showing recovery, and the new payment schedule in the loan file.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 57 - 7(a) Loan Servicing and Liquidation
Servicing and Liquidation Actions 7(a) Lender Matrix
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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