For SBA lenders
Short answer
After selling the guaranteed portion, the 7(a) lender, as the Holder of the unguaranteed portion, remains responsible for all servicing and liquidation, and must report loan status, payments, and any material changes to the Fiscal Transfer Agent.
The selling lender (now the 'Holder' of the unguaranteed portion) retains full servicing and liquidation responsibilities for the entire loan. They must provide monthly reporting on loan status, payments, and any significant events (e.g., deferments, collateral releases) to the Fiscal Transfer Agent (FTA) to ensure the investor (Purchaser) of the guaranteed portion is kept informed and receives proper payments.
A lender sells the guaranteed portion of a $1,000,000 7(a) loan. Monthly, the lender processes the borrower's payment, retains its share, remits the guaranteed portion payment to the FTA, and reports the loan's current status and any servicing actions taken.
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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