For SBA lenders
Short answer
Lenders must meticulously document all eligible liquidation expenses in the UPP, providing invoices, receipts, and proof of payment, ensuring they are reasonable and necessary for recovery.
The Universal Purchase Package (UPP) requires lenders to provide a detailed accounting of all liquidation expenses incurred (e.g., legal fees, appraisal costs, foreclosure costs, asset sale expenses). Each expense must be accompanied by supporting documentation such as invoices, receipts, and proof of payment. The SBA reviews these to ensure they are reasonable, customary, and necessary for maximizing recovery, only reimbursing the guaranteed portion of eligible expenses.
A lender incurs $5,000 in legal fees for a foreclosure action during liquidation. In the UPP, the lender would include the attorney's invoice detailing services rendered, proof of payment, and classify it as an eligible liquidation expense, seeking reimbursement for the guaranteed portion.
Insider move
Lenders prioritize accurate and comprehensive expense documentation in the UPP. They are careful to only include eligible, reasonable, and provable expenses, as inadequately supported or ineligible costs will be disallowed by the SBA, reducing the guaranty purchase amount.
Universal Purchase Package (UPP)
SOP 50 57 - 7(a) Loan Servicing and Liquidation
Request to Honor SBA 7(a) Loan Guaranty
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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