{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-key-impact-of-a-repair-on-an-sba-guaranty-purchase-request","api_url":"https://dealroom.so/api/public/questions/what-is-the-key-impact-of-a-repair-on-an-sba-guaranty-purchase-request","question":"What is the key impact of a 'repair' on an SBA guaranty purchase request?","topic":"Guaranty Purchase / UPP","audience":"lender","bot_mode":"lender","short_answer":"A 'repair' reduces the amount the SBA will pay on its guaranty, typically due to a lender's failure to adhere to specific program requirements, but does not deny the entire guaranty.","rule":"The SBA may 'repair' a guaranty if the lender committed an error that caused a loss, but the error was not severe enough to warrant a full denial of the guaranty. The repair amount usually reflects the portion of the loss attributable to the lender's specific non-compliance.","example":"A lender failed to obtain an updated financial statement from a guarantor as required by the loan authorization. When the loan defaults, the SBA may impose a 10% repair on the guaranty amount, reducing the payout by that percentage due to the servicing deficiency.","what_lenders_check":"Lenders must understand that repairs reduce their recovery. Diligent adherence to all SBA rules from origination through liquidation minimizes the risk of repairs and maximizes the guaranty purchase amount.","required_facts":[],"source_families":["SOP 50 57 - 7(a) Loan Servicing and Liquidation","13 CFR Part 120 - Business Loans"],"official_sources":[{"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":"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":"How does a lender request an SBA guaranty purchase after loan default?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-request-an-sba-guaranty-purchase-after-loan-default"},{"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":"SBA guaranty repair","url":"https://dealroom.so/glossary/sba-guaranty-repair"},{"term":"Repair or denial of the SBA guaranty","url":"https://dealroom.so/glossary/repair-or-denial-of-the-sba-guaranty"},{"term":"Repair of Guaranty","url":"https://dealroom.so/glossary/repair-of-guaranty"},{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"Call on the guaranty","url":"https://dealroom.so/glossary/call-on-the-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-is-the-key-impact-of-a-repair-on-an-sba-guaranty-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."]}