{"ok":true,"canonical_url":"https://dealroom.so/glossary/secondary-participation-guaranty-agreement","api_url":"https://dealroom.so/api/public/glossary/secondary-participation-guaranty-agreement","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-participation-guaranty-agreement","term":"Secondary Participation Guaranty Agreement","group":"People and paperwork","definition":"This is an agreement governing the sale of the SBA-guaranteed portion of a loan by the original lender to a secondary market investor. It outlines the terms of this sale.","what_it_means":"You, as the borrower, are not a party to this agreement. It's between your lender and the entity buying the guaranteed portion of your loan. This transaction doesn't change your loan terms, your payment schedule, or who you make payments to.","url":"https://dealroom.so/glossary/secondary-participation-guaranty-agreement","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":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"},{"slug":"certificate-of-guaranty","term":"Certificate of Guaranty","url":"https://dealroom.so/glossary/certificate-of-guaranty"},{"slug":"loan-agreement","term":"Loan agreement","url":"https://dealroom.so/glossary/loan-agreement"}],"related_questions":[{"question":"Are there any specific SBA fees charged to lenders for their participation in the 7(a) loan program?","url":"https://dealroom.so/for-lenders/questions/are-there-any-specific-sba-fees-charged-to-lenders-for-their-participation-in-the-7-a-loan"},{"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 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":"What specific environmental due diligence is required for real estate collateral used as a secondary source of repayment?","url":"https://dealroom.so/for-lenders/questions/what-specific-environmental-due-diligence-is-required-for-real-estate-collateral-used-as-a"},{"question":"How does life insurance effectively fund a business buy-sell agreement?","url":"https://dealroom.so/sba-7a/questions/how-does-life-insurance-effectively-fund-a-business-buy-sell-agreement"}]},"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 Participation Guaranty Agreement","url":"https://dealroom.so/glossary/secondary-participation-guaranty-agreement","source_type":"DealRoom Data"}}