{"ok":true,"canonical_url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-in-the-universal-purchase-package-upp-to-support-a","api_url":"https://dealroom.so/api/public/questions/what-specific-documentation-is-required-in-the-universal-purchase-package-upp-to-support-a","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?","topic":"Guaranty purchase / UPP","audience":"lender","bot_mode":"lender","short_answer":"When a 7(a) loan defaults due to fraud, the UPP must include evidence of the fraud, such as investigative reports, witness statements, and documentation of the financial loss directly attributable to the fraud. The lender must demonstrate diligence in uncovering and pursuing recovery.","rule":"The Universal Purchase Package (UPP) is used to request SBA to honor its guaranty. If the default is due to fraud committed by the borrower, the lender must provide clear and convincing evidence of the fraud. This includes all documentation from the lender's investigation (e.g., forensic audits, police reports, legal filings), evidence of any attempts to recover funds, and detailed calculations demonstrating the loss directly resulting from the fraudulent activity. The SBA will scrutinize whether the lender acted prudently throughout the loan's lifecycle and during liquidation, despite the fraud.","example":"A lender discovers a borrower intentionally misrepresented financials, leading to default. The UPP submission includes a forensic accounting report detailing the falsified records, copies of an internal investigation, and proof the lender filed a police report. This robust evidence supports the guaranty purchase request despite the fraud.","what_lenders_check":"Fraudulent defaults are complex. Lenders must meticulously document all evidence of fraud and their actions to investigate and mitigate losses. Failure to adequately prove fraud or demonstrate prudent lending practices, even in the face of fraud, can result in a guaranty denial.","required_facts":["Universal Purchase Package","Guaranty purchase request","Borrower fraud","Evidence of fraud","Investigative reports","Financial loss"],"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":"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"},{"question":"What is the importance of the SBA Form 1149 in the guaranty purchase process?","url":"https://dealroom.so/for-lenders/questions/what-is-the-importance-of-the-sba-form-1149-in-the-guaranty-purchase-process"}],"related_terms":[{"term":"Universal Purchase Package","url":"https://dealroom.so/glossary/universal-purchase-package"},{"term":"Request for Reconsideration","url":"https://dealroom.so/glossary/request-for-reconsideration"},{"term":"Guaranty purchase request","url":"https://dealroom.so/glossary/guaranty-purchase-request"},{"term":"Request for Additional Information","url":"https://dealroom.so/glossary/request-for-additional-information"},{"term":"Repair to the guaranty","url":"https://dealroom.so/glossary/repair-to-the-guaranty"},{"term":"Collateral documentation","url":"https://dealroom.so/glossary/collateral-documentation"}],"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-in-the-universal-purchase-package-upp-to-support-a","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."]}