{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-are-the-requirements-for-assigning-secondary-market-loans-through-sba-form-1088","api_url":"https://dealroom.so/api/public/questions/what-are-the-requirements-for-assigning-secondary-market-loans-through-sba-form-1088","question":"What are the requirements for assigning secondary market loans through SBA Form 1088?","topic":"Secondary market","audience":"lender","bot_mode":"lender","short_answer":"Lenders must use SBA Form 1088 to assign the guaranteed portion of an SBA 7(a) loan to a secondary market investor, ensuring proper endorsement and notification to the fiscal transfer agent.","rule":"For lenders participating in the secondary market, SBA Form 1088, the Assignment of Guaranty, is crucial for transferring the ownership of the guaranteed portion of a 7(a) loan. This form, along with proper endorsements and notification to the FTA, ensures the assignment is valid and recorded.","example":"A lender closes a $1,000,000 SBA 7(a) loan with a 75% guaranty. To sell the guaranteed portion on the secondary market, the lender completes SBA Form 1088, endorses the loan note, and sends it to the FTA, thereby transferring the ownership to the purchasing investor.","what_lenders_check":"Lenders must ensure accurate and complete execution of Form 1088 and all related documentation for secondary market assignments. Any errors can delay transfers, impact pricing, or create ownership disputes.","required_facts":["SBA Form 1088","Guaranteed portion","Secondary market","Investor assignment","Fiscal Transfer Agent"],"source_families":["SOP 50 56 - Lender Participation Requirements","13 CFR Part 120 - Business Loans","Standard 7(a) Authorization File Library"],"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":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"Standard 7(a) Authorization File Library","url":"https://www.sba.gov/document/support-standard-7a-authorization-file-library"}],"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 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"},{"question":"What specific representations and warranties must a lender make when selling the guaranteed portion of a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-specific-representations-and-warranties-must-a-lender-make-when-selling-the-guarantee"}],"related_terms":[{"term":"Secondary Market","url":"https://dealroom.so/glossary/secondary-market"},{"term":"Secondary Market Sale","url":"https://dealroom.so/glossary/secondary-market-sale"},{"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"},{"term":"SBA Program Requirements","url":"https://dealroom.so/glossary/sba-program-requirements"}],"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-requirements-for-assigning-secondary-market-loans-through-sba-form-1088","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."]}