For SBA lenders
Short answer
A lender can submit a 'full' UPP when collateral liquidation is ongoing, but must provide an estimated recovery, a detailed liquidation plan, and updates as proceeds are realized.
The SBA encourages timely submission of the UPP. Lenders are not required to complete all liquidation actions before submitting the UPP. If liquidation is ongoing, the lender must include a comprehensive liquidation plan, an estimate of remaining recoveries, and a commitment to update SBA as proceeds are realized and applied. This allows the SBA to purchase the guaranteed portion while liquidation efforts continue.
A defaulted 7(a) loan has business real estate that is still in the process of being sold. The lender submits the UPP, including a detailed plan for the real estate sale, an estimated recovery value, and an agreement to remit SBA's share of proceeds once the sale closes.
Insider move
Lenders must accurately estimate recoveries and provide a credible liquidation plan. Underestimating recoveries or failing to follow through on the plan can lead to SBA questions or adjustments during the guaranty purchase review.
Universal Purchase Package (UPP)
SOP 50 57 - 7(a) Loan Servicing and Liquidation
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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