{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-sba-guaranty-purchase-after-loan-default","api_url":"https://dealroom.so/api/public/questions/how-does-a-lender-request-an-sba-guaranty-purchase-after-loan-default","question":"How does a lender request an SBA guaranty purchase after loan default?","topic":"Guaranty Purchase / UPP","audience":"lender","bot_mode":"lender","short_answer":"After a loan defaults and liquidation actions are initiated, the lender prepares and submits the Universal Purchase Package (UPP) to the SBA, formally requesting the SBA honor its guaranty.","rule":"The process for requesting guaranty purchase involves compiling all necessary documentation, including the loan agreement, authorization, evidence of default, servicing history, liquidation efforts, and a final loss calculation. The UPP must clearly demonstrate that the lender complied with SBA program requirements.","example":"Following a loan default and the sale of collateral generating a partial recovery, the lender calculates the remaining loss. They then assemble the complete UPP and submit it electronically to the SBA's servicing center for review and processing of the guaranty purchase request.","what_lenders_check":"Lenders must ensure all required elements of the UPP are included and accurately reflect the loan's history and the lender's actions. Incomplete or inaccurate packages can delay the purchase or lead to a repair/denial.","required_facts":[],"source_families":["Universal Purchase Package (UPP)","Request to Honor SBA 7(a) Loan Guaranty","SOP 50 57 - 7(a) Loan Servicing and Liquidation"],"official_sources":[{"title":"Universal Purchase Package (UPP)","url":"https://www.sba.gov/sites/default/files/2026-05/UPPv5.2.pdf"},{"title":"Request to Honor SBA 7(a) Loan Guaranty","url":"https://www.sba.gov/sites/default/files/2026-01/Request%20to%20Honor%20SBA%207a%20Loan%20Guaranty.pdf"},{"title":"SOP 50 57 - 7(a) Loan Servicing and Liquidation","url":"https://www.sba.gov/sites/default/files/2025-09/FINAL%20SOP%205057%204%20version.pdf"}],"related_questions":[{"question":"How should a lender document eligible liquidation expenses within the UPP for a 7(a) guaranty purchase?","url":"https://dealroom.so/for-lenders/questions/how-should-a-lender-document-eligible-liquidation-expenses-within-the-upp-for-a-7-a-guaran"},{"question":"What critical information often missing from a Universal Purchase Package (UPP) leads to an SBA request for more information?","url":"https://dealroom.so/for-lenders/questions/what-critical-information-often-missing-from-a-universal-purchase-package-upp-leads-to-an-"},{"question":"How does a lender handle an SBA decision to repair a guaranty due to a minor documentation error during UPP review?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-handle-an-sba-decision-to-repair-a-guaranty-due-to-a-minor-documentation"},{"question":"What is the primary purpose of the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-the-universal-purchase-package-upp"},{"question":"What is the key impact of a 'repair' on an SBA guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-is-the-key-impact-of-a-repair-on-an-sba-guaranty-purchase-request"},{"question":"What is the required timeframe for a lender to submit a Universal Purchase Package (UPP) to the SBA after a 7(a) loan default?","url":"https://dealroom.so/for-lenders/questions/what-is-the-required-timeframe-for-a-lender-to-submit-a-universal-purchase-package-upp-to-"}],"related_terms":[{"term":"Guaranty purchase request","url":"https://dealroom.so/glossary/guaranty-purchase-request"},{"term":"Guaranty Request","url":"https://dealroom.so/glossary/guaranty-request"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"},{"term":"SBA Loan Default","url":"https://dealroom.so/glossary/sba-loan-default"},{"term":"Loan Request","url":"https://dealroom.so/glossary/loan-request"},{"term":"Guaranty Purchase","url":"https://dealroom.so/glossary/guaranty-purchase"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-sba-guaranty-purchase-after-loan-default","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}