# Can an SBA loan fall through after it is approved?

**Short answer:** Yes. Until funds go out, a deal can stall or be canceled if finances decline, IRS transcripts are missing or conditions go unmet. A loan number is not funding. Sources: SOP 50 10 8.1, Sec. B, Ch. 6, Para. D; Sec. A, Ch. 5, Para. B.

Canonical page: https://www.sbaexpress.loans/answers/can-an-sba-loan-fall-through-after-approval/
Last checked: 2026-11-09

Yes. A loan number is not funding, and several requirements can still stop or change the deal.

## Changes in your business

Before disbursement, you must certify no adverse change since you signed the application. The certification covers financial condition, organization, operations and fixed assets (SOP 50 10 8.1, Sec. B, Ch. 6, Para. D.8). 7(a) Small and SBA Express lenders must obtain evidence of no unremedied adverse change (Para. D.11).

## Tax transcripts

If the IRS has no record of a required year, no disbursements may be made. The loan must be canceled or closing postponed, unless the lender documents SBA's exception (Sec. A, Ch. 5, Para. B.4.c, p. 95).

## Unmet conditions

- Collateral, equity, standby agreements and appraisals must be in place before or at disbursement (Para. D.5).
- If required hazard insurance is unavailable, the loan cannot be approved (Sec. A, Ch. 5, Para. C.1).
- If an appraisal comes in under 90% of the estimated value, the lender may not close without SBA's written permission. A Preferred Lender Program (PLP) lender may close with a written justification (Appendix 19, Para. A, about p. 407).

## Fee deadlines

The lender must pay the Upfront Fee on schedule, or SBA will cancel the guaranty (Sec. A, Ch. 4, Para. C.1.a).

## 504 loans

SBA may decline to close the debenture after an unremedied material adverse change (13 CFR 120.960(c)). The Certified Development Company (CDC) must give an opinion on adverse change before funding (Sec. C, Ch. 2, Para. C.5).

Keep your finances steady until the money is out, and tell your lender about new debt or ownership changes.

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 6, Paras. D.5, D.8 and D.11 (Para. D begins p. 207)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 5, Paras. B.4.c and C.1 (pp. 95, 97)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 4, Para. C.1.a (p. 62)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Appendix 19, Para. A, commercial real estate appraisal requirements (about p. 407)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 2, Para. C.5 (about p. 277)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.960](https://www.ecfr.gov/current/title-13/section-120.960)