{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-constitutes-a-repair-to-the-sba-guaranty-during-a-purchase-request","api_url":"https://dealroom.so/api/public/questions/what-constitutes-a-repair-to-the-sba-guaranty-during-a-purchase-request","question":"What constitutes a \"repair\" to the SBA guaranty during a purchase request?","topic":"Repairs & denials","audience":"lender","bot_mode":"lender","short_answer":"A \"repair\" is a reduction in the amount the SBA pays on its guaranty due to an identified deficiency or non-compliance by the lender, often for minor or curable issues that didn't directly cause the loss.","rule":"When a lender submits a guaranty purchase request, the SBA reviews the loan file for compliance with regulations and policies. If a minor non-compliance is found (e.g., missing documentation, minor servicing error), the SBA may opt to \"repair\" (reduce) the guaranty by a specific percentage or amount rather than denying it outright.","example":"A lender requests guaranty purchase on a $500,000 loan. The SBA finds that a personal financial statement from one guarantor was slightly outdated but all other documents were in order. Instead of full denial, the SBA might repair the guaranty by 5%, reducing the payout.","what_lenders_check":"Lenders aim to avoid repairs by ensuring full compliance throughout the loan lifecycle, from origination to servicing and liquidation. Repairs reduce the recovery amount for the lender.","required_facts":["Non-compliance","Lender deficiency","Guaranty reduction","Minor error","Loss recovery"],"source_families":["Universal Purchase Package (UPP)","SOP 50 57 - 7(a) Loan Servicing and Liquidation","Request to Honor SBA 7(a) Loan Guaranty"],"official_sources":[{"title":"Universal Purchase Package (UPP)","url":"https://www.sba.gov/sites/default/files/2026-05/UPPv5.2.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"},{"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"}],"related_questions":[{"question":"When does a lender's failure to properly monitor collateral value during servicing result in a 7(a) guaranty repair?","url":"https://dealroom.so/for-lenders/questions/when-does-a-lender-s-failure-to-properly-monitor-collateral-value-during-servicing-result-"},{"question":"What specific underwriting failures or omissions by a lender are categorized as 'material non-compliance' by the SBA, risking 7(a) guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-underwriting-failures-or-omissions-by-a-lender-are-categorized-as-material-n"},{"question":"What constitutes 'material non-compliance' with SBA lending policies that typically leads to a guaranty repair or denial?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-material-non-compliance-with-sba-lending-policies-that-typically-leads-to"},{"question":"Can an SBA 7(a) loan be repaired if the lender failed to ensure the borrower properly used all loan proceeds as authorized?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-loan-be-repaired-if-the-lender-failed-to-ensure-the-borrower-properly-used-"},{"question":"What specific actions by a lender during loan origination would typically lead to a guaranty denial?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-by-a-lender-during-loan-origination-would-typically-lead-to-a-guaran"},{"question":"What specific actions by a lender during loan origination would typically lead to an outright denial of the SBA 7(a) guaranty, rather than a repair?","url":"https://dealroom.so/for-lenders/questions/what-specific-actions-by-a-lender-during-loan-origination-would-typically-lead-to-an-outri"}],"related_terms":[{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"Guaranty purchase request","url":"https://dealroom.so/glossary/guaranty-purchase-request"},{"term":"SBA guaranty repair","url":"https://dealroom.so/glossary/sba-guaranty-repair"},{"term":"Guaranty Request","url":"https://dealroom.so/glossary/guaranty-request"},{"term":"Guaranty Repair","url":"https://dealroom.so/glossary/guaranty-repair"},{"term":"Repair or denial of the SBA guaranty","url":"https://dealroom.so/glossary/repair-or-denial-of-the-sba-guaranty"}],"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-constitutes-a-repair-to-the-sba-guaranty-during-a-purchase-request","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."]}