{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-are-the-ongoing-servicing-obligations-a-7-a-lender-retains-after-selling-the-guarante","api_url":"https://dealroom.so/api/public/questions/what-are-the-ongoing-servicing-obligations-a-7-a-lender-retains-after-selling-the-guarante","question":"What are the ongoing servicing obligations a 7(a) lender retains after selling the guaranteed portion of a loan on the secondary market?","topic":"Secondary market","audience":"lender","bot_mode":"lender","short_answer":"After selling the guaranteed portion, the originating lender (Holder) remains the servicer of the entire loan and is responsible for all servicing actions, including collections, reporting, and remitting payments to the secondary market investor.","rule":"The selling of the guaranteed portion transfers only the financial interest in that part of the loan, not the servicing responsibilities. The originating lender remains the 'Holder' in the SBA's eyes and is fully responsible for servicing the entire loan (both guaranteed and unguaranteed portions) in a prudent manner consistent with SBA policies.","example":"A lender sells the guaranteed 75% of a $1,000,000 loan. The lender continues to collect monthly payments from the borrower, apply them, and then remit the appropriate pro-rata portion of principal and interest to the secondary market investor. They also handle any borrower requests, modifications, or defaults.","what_lenders_check":"Lenders must maintain robust servicing operations and compliance even after selling the guaranteed portion. Failure to properly service the loan can lead to a repair or denial of the guaranty if the loan defaults, as the SBA holds the originating lender accountable.","required_facts":["Secondary market","Servicing obligations","Originating lender","Holder","Collections","Remittance"],"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":"Guaranteed Portion","url":"https://dealroom.so/glossary/guaranteed-portion"},{"term":"Ongoing servicing fee","url":"https://dealroom.so/glossary/ongoing-servicing-fee"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"Annual Ongoing Servicing Fee","url":"https://dealroom.so/glossary/annual-ongoing-servicing-fee"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"Standard 7(a) loan","url":"https://dealroom.so/glossary/standard-7-a-loan"}],"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/what-are-the-ongoing-servicing-obligations-a-7-a-lender-retains-after-selling-the-guarante","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."]}