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Deal Structure & Financing

Preferred Lender Program (PLP)

An SBA designation granted to lenders that have demonstrated sustained proficiency in SBA 7(a) underwriting. PLP lenders hold delegated authority to make final credit decisions and issue loan approvals without submitting the file to the SBA for concurrent review. Non-PLP lenders must route applications through the SBA loan processing center, adding three to four weeks to the approval timeline. Because most negotiated business acquisitions target a 90-day close, PLP lender status is effectively required to meet that schedule. (Also see SBA 7(a).)

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