For SBA lenders
Short answer
Lenders may approve a deferment without prior SBA approval if the deferment period does not exceed 12 months in total, the borrower is current or less than 90 days delinquent, and the action is consistent with prudent lending standards.
The SBA allows lenders to take certain unilateral servicing actions to help borrowers overcome temporary financial difficulties. A deferment period up to 12 months is generally permitted without prior SBA approval, provided the loan is not severely delinquent and the lender documents the rationale for the deferment.
A borrower experiences a temporary cash flow crunch due to supply chain issues. The lender, after reviewing the borrower's financials and projections, approves a 3-month deferment of principal and interest without seeking prior SBA approval, documenting the decision.
Insider move
Lenders must ensure deferments are applied judiciously and documented meticulously. Overlapping deferments, excessive durations, or deferments for severely delinquent loans without SBA approval can jeopardize the guaranty.
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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