{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-required-timeframe-for-a-lender-to-submit-a-liquidation-plan","api_url":"https://dealroom.so/api/public/questions/what-is-the-required-timeframe-for-a-lender-to-submit-a-liquidation-plan","question":"What is the required timeframe for a lender to submit a liquidation plan?","topic":"Liquidation","audience":"lender","bot_mode":"lender","short_answer":"Lenders are generally required to submit a liquidation plan to the SBA within 90 days after loan default, or within a timeframe specified by SBA in a specific communication.","rule":"Upon a loan default, the lender must promptly initiate liquidation actions to minimize losses. Submitting a liquidation plan within the specified timeframe demonstrates proactive management and outlines the lender's strategy for maximizing recovery on the defaulted loan.","example":"A 7(a) loan defaults on January 1. The lender must develop and submit a comprehensive liquidation plan, including asset recovery strategies and cost estimates, to the SBA by March 31.","what_lenders_check":"Lenders must adhere strictly to SBA's timelines for liquidation actions. Delays in submitting the liquidation plan can lead to a repair or denial of the guaranty, as it indicates a failure to mitigate losses promptly.","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":"What constitutes diligent liquidation efforts a lender must demonstrate before submitting a guaranty purchase request?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-diligent-liquidation-efforts-a-lender-must-demonstrate-before-submitting-"},{"question":"What specific documentation must a lender include in a liquidation plan submitted to the SBA?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-must-a-lender-include-in-a-liquidation-plan-submitted-to-the-s"},{"question":"What are the SBA's expectations for a lender's collateral valuation during the liquidation process of a defaulted 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-are-the-sba-s-expectations-for-a-lender-s-collateral-valuation-during-the-liquidation"},{"question":"How does a lender assess 'prudent liquidation' for a 7(a) loan to protect the SBA guaranty?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-assess-prudent-liquidation-for-a-7-a-loan-to-protect-the-sba-guaranty"},{"question":"What minimum collection efforts must a lender demonstrate before submitting a 7(a) liquidation plan?","url":"https://dealroom.so/for-lenders/questions/what-minimum-collection-efforts-must-a-lender-demonstrate-before-submitting-a-7-a-liquidat"},{"question":"What is the specific lender process for obtaining SBA approval for a debt compromise offer from a borrower in liquidation?","url":"https://dealroom.so/for-lenders/questions/what-is-the-specific-lender-process-for-obtaining-sba-approval-for-a-debt-compromise-offer"}],"related_terms":[{"term":"Liquidation Plan","url":"https://dealroom.so/glossary/liquidation-plan"},{"term":"Initial Liquidation Plan","url":"https://dealroom.so/glossary/initial-liquidation-plan"},{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"Required guarantor","url":"https://dealroom.so/glossary/required-guarantor"},{"term":"Lender's Application for Guaranty","url":"https://dealroom.so/glossary/lender-s-application-for-guaranty"},{"term":"Required Lien Position","url":"https://dealroom.so/glossary/required-lien-position"}],"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-required-timeframe-for-a-lender-to-submit-a-liquidation-plan","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."]}