It is important for Lenders to understand how SBA 7(a) loans must be processed pursuant to SOP 50 10 8 with Technical Updates which became effective as of June 1, 2025.
As of June 1, 2025, Lenders with delegated authority (PLP) must process all loans using their delegated authority (PLP), except the following loans, which must be submitted to SBA via E-Tran for SBA approval under non-delegated procedures:
- 7(a) loans to be used (in whole or in part) to refinance the Lender’s same institution debt; and
- International Trade Loans that will not be secured by a first priority lien against the collateral for the loan.
Lenders that have delegated authority (PLP) may make a request for an exception for any type of 7(a) loan to 7aDelegatedLoanApps@sba.gov, providing detailed information about the application including the names of the principals, address of the project, and a discussion of the policy for which the exception is being requested along with an explanation why the exception to policy should be granted. Lender is to provide a summary of the facts – SBA will not be reviewing the entire case file or multiple attachments.
- If SBA approves the exception, the Lender will receive an email confirming the approval, and the Lender must proceed to process the application under delegated authority. The Lender must retain the approval email in the loan file. Exceptions to policy will be considered on a case-by-case basis, and the decision will only apply to the specific request.
- The 7aDelegatedLoanApps@sba.gov email account is only for Lenders with delegated authority that have questions about a specific loan application and is not to be used for general policy questions, which should be sent to 7aQuestions@sba.gov.
Lenders that do not have delegated authority must submit applications to SBA via E-Tran for SBA approval under non-delegated procedures. Non-delegated Lenders may submit requests for exceptions to 7aLoanProgram@sba.gov, and the loan will be processed under non-delegated procedures.
SBA Express loans are loans that are $500,000 or less and may only be made by a Lender with SBA Express authority. SBA Express Lenders may not request that an SBA Express loan be processed under non-delegated authority by SBA’s Loan Guaranty Processing Center (LGPC).
Lenders may obtain delegated authority to process, close, service, and liquidate Working Capital Pilot (WCP) loans without prior SBA review (referred to as the Preferred Lender Program (PLP)-WCP). Lenders with regular SBA 7(a) delegated authority (PLP) must be separately approved for PLP-WCP delegated authority. As such, Lenders who have received regular SBA 7(a) delegated authority (PLP), but have not received PLP-WCP, do not have authority to process WCP loans under their regular SBA 7(a) delegated authority (PLP).
If your lending institution has questions about SOP 50 10 8, please contact us at SBAQuestions@JellumLaw.com.