For SBA lenders
Short answer
The lender remains fully responsible for all servicing, liquidation, and reporting activities for the entire loan, including the unguaranteed portion, even after selling the guaranteed portion.
Selling the guaranteed portion does not absolve the lender of its primary responsibility for the loan. The lender must continue to service the loan diligently, follow SBA servicing and liquidation policies, pursue collection from the borrower and guarantors, and report all actions to the SBA, as if no portion was sold. This protects both the lender's unguaranteed portion and the SBA's guaranty.
A lender sells the guaranteed portion of a 7(a) loan. When the loan defaults, the lender must still initiate liquidation, manage collateral, and pursue collection from the borrower and guarantors, reporting all actions to the SBA, even though an investor owns the guaranteed part.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 56 - Lender Participation Requirements
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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