SBA preferred lender (PLP)

Definition

A bank the SBA has authorized to approve and close 7(a) loans in-house, without sending each file to the agency for its own review.

Why It Matters

It is why the searcher-favorite banks are nearly all preferred lenders: a PLP can commit and close weeks faster than a bank that routes every file through the SBA, which is the difference that matters on a deal with a financing contingency and a closing clock.