For SBA lenders
Short answer
After selling, the lender remains the servicer of record, responsible for all loan servicing and liquidation actions, and must report to the secondary market purchaser as agreed.
Per SOP 50 56, even after selling the guaranteed portion of a 7(a) loan, the originating lender retains full responsibility for servicing and liquidating the entire loan. This includes collecting payments, managing collateral, handling defaults, and initiating guaranty purchase requests, as well as fulfilling reporting obligations to the secondary market holder.
A lender sells the guaranteed portion of a $1,000,000 loan. Three years later, the borrower defaults. The originating lender is still responsible for managing the liquidation, filing for guaranty purchase, and remitting any recoveries to the secondary market holder per their agreement.
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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