SBA loan basics
Short answer
The SBA Loan Authorization is the official document that outlines all the terms, conditions, and requirements of your specific SBA 7(a) loan, provided by the lender after approval.
This legally binding document details the loan amount, interest rate, repayment schedule, collateral requirements, use of proceeds, conditions of disbursement, and any specific covenants. Both the borrower and lender must adhere to its terms.
After a bank approves a $1 million SBA 7(a) loan, they issue a Loan Authorization specifying a 10-year term, variable interest rate (Prime + 2.75%), and that funds must be used for a business acquisition and working capital.
Insider move
Lenders ensure the Loan Authorization accurately reflects the approved terms and conditions, and that the borrower fully understands and agrees to all covenants before closing. It serves as the master legal document for the loan.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Standard 7(a) Authorization File Library
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
Terms in this answer
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