For SBA lenders
Short answer
Lenders must continue to service the entire loan and report regularly to the SBA's fiscal agent, including monthly payments, changes in loan status, and any servicing actions.
Even after selling the guaranteed portion of a 7(a) loan on the secondary market, the originating lender remains the "holder" of the unguaranteed portion and the "Servicing Agent" for the entire loan. The lender must continue to service the loan in accordance with SBA policies and report all payment activity, loan status changes, and any servicing actions (even those taken without prior SBA approval) to the SBA's fiscal agent on a timely basis.
A lender sells the guaranteed portion of a 7(a) loan. Monthly, the lender processes the borrower's payment, retains the unguaranteed portion's payment, and remits the guaranteed portion's payment to the secondary market investor, reporting all these transactions to the fiscal agent. If a deferment is approved, it must also be reported.
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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