For SBA lenders
Short answer
The lender retains all servicing responsibilities for the entire loan, including both the guaranteed and unguaranteed portions. This includes collecting payments, managing collateral, and handling any loan modifications or defaults.
Even after selling the guaranteed portion, the originating lender remains the "holder of record" for the entire loan. They are responsible for all aspects of servicing, liquidation, and reporting to the SBA. The sale of the guaranty only transfers the risk of loss on that portion, not the servicing duties.
A lender sells the 75% guaranteed portion of a $500,000 7(a) loan. Two years later, the borrower requests a deferral. The originating lender must process this request, follow SBA servicing guidelines, and report the action to the SBA, even though the guaranty was sold.
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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