For SBA lenders
Short answer
Lenders can approve deferments without prior SBA approval under specific conditions, typically for up to six months, if the borrower's default is due to non-financial reasons and the lender determines it is in the best interest of the government.
The Servicing and Liquidation Actions 7(a) Lender Matrix outlines specific conditions under which lenders have unilateral authority. For deferments, this generally applies to a 'temporary inability to pay' due to non-financial reasons, up to six months, where the deferment will resolve the issue and the loan is not in liquidation.
A borrower requests a three-month deferment due to a temporary business interruption caused by a natural disaster. The lender, after assessing the borrower's recovery plan and financial impact, approves the deferment without SBA approval, documenting the decision thoroughly.
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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