{"ok":true,"canonical_url":"https://dealroom.so/glossary/prudent-servicing","api_url":"https://dealroom.so/api/public/glossary/prudent-servicing","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":"prudent-servicing","term":"Prudent servicing","group":"Doing the deal","definition":"This refers to the lender's responsibility to manage and collect on a loan in a commercially reasonable manner. The SBA requires lenders to follow these standards to ensure the loan is handled properly.","what_it_means":"While it's mainly the lender's job, understanding prudent servicing assures you that your lender is obligated to follow established practices for managing your SBA loan. If you experience issues, knowing this standard helps you understand what to expect from your lender and the SBA's expectations for them.","url":"https://dealroom.so/glossary/prudent-servicing","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":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"},{"slug":"origination","term":"Origination","url":"https://dealroom.so/glossary/origination"}],"related_questions":[{"question":"Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?","url":"https://dealroom.so/sba-7a/questions/are-there-annual-servicing-fees-or-other-recurring-charges-beyond-the-sba-servicing-fee"},{"question":"What servicing actions require prior written SBA approval?","url":"https://dealroom.so/for-lenders/questions/what-servicing-actions-require-prior-written-sba-approval"},{"question":"What constitutes prudent lending standards for SBA 7(a) underwriting?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-lending-standards-for-sba-7-a-underwriting"},{"question":"How is the ongoing servicing fee calculated and remitted to the SBA?","url":"https://dealroom.so/for-lenders/questions/how-is-the-ongoing-servicing-fee-calculated-and-remitted-to-the-sba"},{"question":"Which servicing actions can a 7(a) lender take without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/which-servicing-actions-can-a-7-a-lender-take-without-prior-sba-approval"},{"question":"What servicing actions can a 7(a) lender take without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/what-servicing-actions-can-a-7-a-lender-take-without-prior-sba-approval"}]},"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 — Prudent servicing","url":"https://dealroom.so/glossary/prudent-servicing","source_type":"DealRoom Data"}}