For SBA lenders
Short answer
Lenders must use SBA Form 1088 to assign the guaranteed portion of an SBA 7(a) loan to a secondary market investor, ensuring proper endorsement and notification to the fiscal transfer agent.
For lenders participating in the secondary market, SBA Form 1088, the Assignment of Guaranty, is crucial for transferring the ownership of the guaranteed portion of a 7(a) loan. This form, along with proper endorsements and notification to the FTA, ensures the assignment is valid and recorded.
A lender closes a $1,000,000 SBA 7(a) loan with a 75% guaranty. To sell the guaranteed portion on the secondary market, the lender completes SBA Form 1088, endorses the loan note, and sends it to the FTA, thereby transferring the ownership to the purchasing investor.
Insider move
Lenders must ensure accurate and complete execution of Form 1088 and all related documentation for secondary market assignments. Any errors can delay transfers, impact pricing, or create ownership disputes.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 56 - Lender Participation Requirements
Standard 7(a) Authorization File Library
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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