{"ok":true,"canonical_url":"https://dealroom.so/glossary/secondary-market-investor","api_url":"https://dealroom.so/api/public/glossary/secondary-market-investor","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":"secondary-market-investor","term":"Secondary market investor","group":"Doing the deal","definition":"An entity that buys and sells existing loan participations, often the guaranteed portion of SBA loans. Lenders sell portions of loans to these investors to free up capital for new lending.","what_it_means":"After your SBA loan closes, your lender might sell the guaranteed portion of your loan to a secondary market investor. This is common practice and doesn't change your loan terms or repayment obligations. It's how lenders manage their balance sheets and continue offering more loans.","url":"https://dealroom.so/glossary/secondary-market-investor","official_sources":[{"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":"secondary-market","term":"Secondary Market","url":"https://dealroom.so/glossary/secondary-market"},{"slug":"pooling","term":"Pooling","url":"https://dealroom.so/glossary/pooling"},{"slug":"fiscal-and-transfer-agent","term":"Fiscal and Transfer Agent","url":"https://dealroom.so/glossary/fiscal-and-transfer-agent"}],"related_questions":[{"question":"How does the SBA process the guaranty payment to the secondary market investor (Purchaser) for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-process-the-guaranty-payment-to-the-secondary-market-investor-purchaser-f"},{"question":"What specific actions must a lender take if a secondary market investor defaults on purchasing the guaranteed portion of a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-must-a-lender-take-if-a-secondary-market-investor-defaults-on-purcha"},{"question":"What are the requirements for assigning secondary market loans through SBA Form 1088?","url":"https://dealroom.so/for-lenders/questions/what-are-the-requirements-for-assigning-secondary-market-loans-through-sba-form-1088"},{"question":"What specific lender reporting requirements apply to the sale of the guaranteed portion on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-specific-lender-reporting-requirements-apply-to-the-sale-of-the-guaranteed-portion-on"},{"question":"How often does the SBA require lenders to report on 7(a) loan portfolio performance for secondary market purposes?","url":"https://dealroom.so/for-lenders/questions/how-often-does-the-sba-require-lenders-to-report-on-7-a-loan-portfolio-performance-for-sec"},{"question":"How does the SBA typically review a lender's loan file in the context of a secondary market audit?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-typically-review-a-lender-s-loan-file-in-the-context-of-a-secondary-marke"}]},"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 — Secondary market investor","url":"https://dealroom.so/glossary/secondary-market-investor","source_type":"DealRoom Data"}}