SBA loan basics
Short answer
A Preferred Lender (PLP) is a bank authorized by the SBA to make final loan approval decisions without seeking direct SBA review. This speeds up the application process significantly.
The SBA grants PLP status to experienced lenders with a proven track record of successful SBA loan underwriting and servicing. PLP lenders have delegated authority, meaning they can process, approve, and close most 7(a) loans without prior SBA approval. This reduces the time it takes to get a loan from application to funding, as the SBA's internal review step is largely bypassed.
If you apply for an SBA loan through a PLP bank, your application might be approved and funded in 45-60 days. If you apply through a non-PLP bank, the same loan might take 75-120 days because the SBA must conduct its own detailed review after the lender submits it.
SOP 50 10 - Lender and Development Company Loan Programs
SOP 50 56 - Lender Participation Requirements
SBLC Moratorium Rescission and Removal of Loan Authorization Requirement - Final Rule
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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