SBA authorization

Definition

The terms a lender must close an SBA loan under, once approved.

Why It Matters

It is the moment the loan stops being a proposal, and it names the conditions that have to be satisfied before any money moves: the life insurance assignment, the standby agreement, the landlord consent, the equity injection proof. Read it the day it arrives rather than the week of closing, because every line is a task with an owner, and the ones that involve a third party are the ones that slip. A closing date set before this document exists is a hope.

In numbers: A file approved with 8 conditions attached is 8 separate errands, and the 2 or 3 needing a landlord, an insurer, or a state office decide whether the date holds. Missing one on a $1.2M loan does not reprice the deal, it moves it.