{"ok":true,"canonical_url":"https://dealroom.so/glossary/diligent-servicing-action","api_url":"https://dealroom.so/api/public/glossary/diligent-servicing-action","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"diligent-servicing-action","term":"Diligent Servicing Action","group":"Doing the deal","definition":"The steps a lender must take to service an SBA loan, especially when it's in default, to protect the SBA's interest. This ensures the lender follows proper procedures.","what_it_means":"If your loan defaults, your lender is required to take diligent servicing actions, which include attempting to collect, securing collateral, and eventually liquidating assets if necessary. These actions must comply with SBA rules to ensure the guaranty remains valid.","url":"https://dealroom.so/glossary/diligent-servicing-action","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"servicing","term":"Servicing","url":"https://dealroom.so/glossary/servicing"},{"slug":"loan-default","term":"Loan default","url":"https://dealroom.so/glossary/loan-default"},{"slug":"liquidation","term":"Liquidation","url":"https://dealroom.so/glossary/liquidation"},{"slug":"guaranty-purchase-request","term":"Guaranty purchase request","url":"https://dealroom.so/glossary/guaranty-purchase-request"}],"related_questions":[{"question":"What specific actions constitute an 'unapproved material servicing action' that could lead to a 7(a) guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-constitute-an-unapproved-material-servicing-action-that-could-lead-t"},{"question":"How does an unapproved material servicing action impact the SBA's 7(a) loan guaranty?","url":"https://dealroom.so/for-lenders/questions/how-does-an-unapproved-material-servicing-action-impact-the-sba-s-7-a-loan-guaranty"},{"question":"When can a lender request prior approval from the SBA for a significant servicing action?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-request-prior-approval-from-the-sba-for-a-significant-servicing-action"},{"question":"What information must a lender provide to the SBA when requesting prior approval for a significant servicing action?","url":"https://dealroom.so/for-lenders/questions/what-information-must-a-lender-provide-to-the-sba-when-requesting-prior-approval-for-a-sig"},{"question":"What is the impact of an unapproved material servicing action on the SBA's 7(a) loan guaranty?","url":"https://dealroom.so/for-lenders/questions/what-is-the-impact-of-an-unapproved-material-servicing-action-on-the-sba-s-7-a-loan-guaran"},{"question":"What constitutes a 'material change' to collateral that requires prior SBA approval for a 7(a) loan servicing action?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-material-change-to-collateral-that-requires-prior-sba-approval-for-a-7-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Diligent Servicing Action","url":"https://dealroom.so/glossary/diligent-servicing-action","source_type":"DealRoom Data"}}