{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/post-secondary-market-sale-what-are-the-lender-s-continuing-obligations-regarding-servicin","api_url":"https://dealroom.so/api/public/questions/post-secondary-market-sale-what-are-the-lender-s-continuing-obligations-regarding-servicin","question":"Post-secondary market sale, what are the lender's continuing obligations regarding servicing, reporting, and liquidation of the unguaranteed portion of a 7(a) loan?","topic":"Secondary market","audience":"lender","bot_mode":"lender","short_answer":"The lender remains fully responsible for all servicing, liquidation, and reporting activities for the entire loan, including the unguaranteed portion, even after selling the guaranteed portion.","rule":"Selling the guaranteed portion does not absolve the lender of its primary responsibility for the loan. The lender must continue to service the loan diligently, follow SBA servicing and liquidation policies, pursue collection from the borrower and guarantors, and report all actions to the SBA, as if no portion was sold. This protects both the lender's unguaranteed portion and the SBA's guaranty.","example":"A lender sells the guaranteed portion of a 7(a) loan. When the loan defaults, the lender must still initiate liquidation, manage collateral, and pursue collection from the borrower and guarantors, reporting all actions to the SBA, even though an investor owns the guaranteed part.","what_lenders_check":"Lenders must ensure their servicing and liquidation departments understand that selling the guaranteed portion does not reduce their responsibilities, and non-compliance can still lead to issues with the SBA guaranty.","required_facts":["Secondary market","Lender responsibilities","Servicing","Liquidation","Unguaranteed portion"],"source_families":["SOP 50 56 - Lender Participation Requirements","SOP 50 57 - 7(a) Loan Servicing and Liquidation","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 56 - Lender Participation Requirements","url":"https://www.sba.gov/sites/default/files/2023-06/WF%20Attachment%20238243%20Final%20Closeout-%20SOP_50_56_6_07_2023_Final_.docx"},{"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"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"What are the specific reporting requirements for lenders after selling the guaranteed portion of a 7(a) loan on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-reporting-requirements-for-lenders-after-selling-the-guaranteed-port"},{"question":"What specific ongoing reporting obligations does a 7(a) lender have to the SBA after securitizing and selling the guaranteed portion of a loan on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-specific-ongoing-reporting-obligations-does-a-7-a-lender-have-to-the-sba-after-securi"},{"question":"What are a lender's ongoing servicing obligations after selling the guaranteed portion of a 7(a) loan on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-are-a-lender-s-ongoing-servicing-obligations-after-selling-the-guaranteed-portion-of-"},{"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 are the key requirements for a lender to sell the guaranteed portion of a 7(a) loan on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-are-the-key-requirements-for-a-lender-to-sell-the-guaranteed-portion-of-a-7-a-loan-on"},{"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"}],"related_terms":[{"term":"Secondary Market Sale","url":"https://dealroom.so/glossary/secondary-market-sale"},{"term":"Servicing and liquidation","url":"https://dealroom.so/glossary/servicing-and-liquidation"},{"term":"Secondary Market","url":"https://dealroom.so/glossary/secondary-market"},{"term":"Secondary market audit","url":"https://dealroom.so/glossary/secondary-market-audit"},{"term":"Secondary market purchaser","url":"https://dealroom.so/glossary/secondary-market-purchaser"},{"term":"Secondary market investor","url":"https://dealroom.so/glossary/secondary-market-investor"}],"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/post-secondary-market-sale-what-are-the-lender-s-continuing-obligations-regarding-servicin","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."]}