For SBA lenders
Short answer
Lenders must report all sales of the guaranteed portion of 7(a) loans to the SBA through the Fiscal Transfer Agent (FTA) system, providing details of the sale and purchaser within specified timeframes.
SBA requires strict reporting to maintain accurate records of loan ownership and servicing responsibility, especially for guaranteed portions sold on the secondary market. Lenders must register these transactions with the FTA, typically within 10 business days of the sale. This ensures the SBA, as guarantor, knows who holds the guaranteed portion and where to direct guaranty purchase payments in case of default.
A lender sells the guaranteed portion of a $1,000,000 7(a) loan to a secondary market investor. Within 10 business days, the lender logs into the FTA system and submits all required details, including the loan number, investor ID, and the amount of the guaranteed portion sold.
Insider move
Timely and accurate reporting to the FTA is crucial. Failure to properly report secondary market sales can lead to administrative penalties, delays in guaranty purchase, or even a dispute over the validity of the guaranty claim if the SBA's records are not consistent.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 56 - Lender Participation Requirements
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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