{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-is-the-timeframe-for-a-lender-to-submit-a-universal-purchase-package-upp-after-loan-d","api_url":"https://dealroom.so/api/public/questions/what-is-the-timeframe-for-a-lender-to-submit-a-universal-purchase-package-upp-after-loan-d","question":"What is the timeframe for a lender to submit a Universal Purchase Package (UPP) after loan default?","topic":"Guaranty purchase / UPP","audience":"lender","bot_mode":"lender","short_answer":"A lender must submit the UPP to the SBA within 120 days of the liquidation value being fully maximized, or within 120 days of completing liquidation actions, whichever is later.","rule":"The SBA requires lenders to diligently pursue liquidation and then promptly submit the UPP to request guaranty purchase. The 120-day timeframe ensures timely processing of the guaranty request once all reasonable recovery efforts have been exhausted and documented.","example":"A lender finishes foreclosing on real estate collateral and liquidating equipment for a defaulted 7(a) loan on June 1st. All proceeds are applied to the loan. The lender must submit the complete Universal Purchase Package to the SBA by September 29th (120 days later).","what_lenders_check":"Failure to submit the UPP within the specified timeframe can lead to a reduction in the SBA's guaranty percentage or outright denial, as it may indicate a lack of prudent liquidation efforts.","required_facts":["UPP submission","Timeframe","Loan default","Liquidation completion","Guaranty purchase"],"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":"What are the most frequent reasons the SBA denies a 7(a) guaranty purchase request due to lender errors during origination?","url":"https://dealroom.so/for-lenders/questions/what-are-the-most-frequent-reasons-the-sba-denies-a-7-a-guaranty-purchase-request-due-to-l"},{"question":"How does a lender properly account for eligible liquidation expenses within the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-properly-account-for-eligible-liquidation-expenses-within-the-universal-"},{"question":"What specific documentation is required in the Universal Purchase Package (UPP) to support a request for guaranty purchase when the borrower has defaulted due to fraud?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-in-the-universal-purchase-package-upp-to-support-a"},{"question":"How does a lender process a Universal Purchase Package (UPP) when collateral is still being liquidated?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-process-a-universal-purchase-package-upp-when-collateral-is-still-being-"},{"question":"What specific documentation is required in the Universal Purchase Package (UPP) to support eligible liquidation expenses?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-in-the-universal-purchase-package-upp-to-support-e"},{"question":"What is the primary purpose of the Universal Purchase Package (UPP) for lenders?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-the-universal-purchase-package-upp-for-lenders"}],"related_terms":[{"term":"Universal Purchase Package","url":"https://dealroom.so/glossary/universal-purchase-package"},{"term":"Loan package","url":"https://dealroom.so/glossary/loan-package"},{"term":"Loan Application Package","url":"https://dealroom.so/glossary/loan-application-package"},{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"Loan-to-Value","url":"https://dealroom.so/glossary/loan-to-value"}],"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-timeframe-for-a-lender-to-submit-a-universal-purchase-package-upp-after-loan-d","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."]}