{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-for-a-lender-to-sell-the-guaranteed-portion-of-a-7","api_url":"https://dealroom.so/api/public/questions/what-specific-documentation-is-required-for-a-lender-to-sell-the-guaranteed-portion-of-a-7","question":"What specific documentation is required for a lender to sell the guaranteed portion of a 7(a) loan on the secondary market?","topic":"Secondary Market","audience":"lender","bot_mode":"lender","short_answer":"To sell the guaranteed portion, lenders require a completed SBA Form 1088 (Assignment of Loan Guaranty), the loan authorization, promissory note, and a Certificate of Incumbency. The assignment must be properly executed.","rule":"The SBA's secondary market allows lenders to sell the guaranteed portion of 7(a) loans to investors, providing liquidity. Key documentation includes SBA Form 1088, which formally assigns the guaranty to the investor. Lenders must ensure all required fields are correctly completed, that the assignment accurately reflects the guaranteed amount, and that it is properly executed and recorded to ensure the transfer is valid.","example":"A lender sells the $800,000 guaranteed portion of a $1 million 7(a) loan. They prepare SBA Form 1088, ensuring the loan identification number, guaranteed amount, and assignment details are correct, and provide it along with the original authorization and note to the purchasing investor.","what_lenders_check":"Lenders must ensure all documentation for secondary market sales is accurate and complete to avoid issues with the investor or potential challenges to the guaranty. Errors can lead to repurchase demands or impact the lender's ability to sell future loans.","required_facts":["Secondary market","Guaranteed portion","SBA Form 1088","Loan authorization","Promissory note"],"source_families":["SOP 50 56 - Lender Participation Requirements","Servicing and Liquidation Actions 7(a) Lender Matrix","SBA Document Search"],"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":"Servicing and Liquidation Actions 7(a) Lender Matrix","url":"https://www.sba.gov/sites/default/files/2026-01/v18_Servicing%20and%20Liquidation%20Actions%207%28a%29%20Lender%20Matrix.pdf"},{"title":"SBA Document Search","url":"https://www.sba.gov/documents"}],"related_questions":[{"question":"What are the rules for a 7(a) lender to sell the guaranteed portion of a loan on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-are-the-rules-for-a-7-a-lender-to-sell-the-guaranteed-portion-of-a-loan-on-the-second"},{"question":"What is a lender's ongoing responsibility for servicing a 7(a) loan after selling the guaranteed portion on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-is-a-lender-s-ongoing-responsibility-for-servicing-a-7-a-loan-after-selling-the-guara"},{"question":"What documentation must a lender provide to the FTA when selling the guaranteed portion of a 7(a) loan on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-documentation-must-a-lender-provide-to-the-fta-when-selling-the-guaranteed-portion-of"},{"question":"What are the consequences for a lender if a previously sold guaranteed portion of a loan defaults due to lender error?","url":"https://dealroom.so/for-lenders/questions/what-are-the-consequences-for-a-lender-if-a-previously-sold-guaranteed-portion-of-a-loan-d"},{"question":"What are the lender requirements for pooling and selling the guaranteed portion?","url":"https://dealroom.so/for-lenders/questions/what-are-the-lender-requirements-for-pooling-and-selling-the-guaranteed-portion"},{"question":"What are the requirements for pooling and selling the guaranteed portion of a 7(a) loan on the secondary market?","url":"https://dealroom.so/for-lenders/questions/what-are-the-requirements-for-pooling-and-selling-the-guaranteed-portion-of-a-7-a-loan-on-"}],"related_terms":[{"term":"Guaranteed Portion","url":"https://dealroom.so/glossary/guaranteed-portion"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"Standard 7(a) loan","url":"https://dealroom.so/glossary/standard-7-a-loan"},{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) Small Loan","url":"https://dealroom.so/glossary/7-a-small-loan"}],"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-specific-documentation-is-required-for-a-lender-to-sell-the-guaranteed-portion-of-a-7","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."]}