For SBA lenders
Short answer
The selling lender retains full servicing responsibilities for the entire 7(a) loan, including the unguaranteed portion, even after selling the guaranteed portion to a secondary market investor.
When a lender sells the guaranteed portion of a 7(a) loan on the secondary market, they do so as the 'holder' of the unguaranteed portion and remain the sole point of contact for the borrower. The lender is responsible for all aspects of servicing, including collections, modifications, and, if necessary, liquidation, according to prudent lending standards and SBA policy.
A lender sells the guaranteed portion of a $1,000,000 7(a) loan. Two years later, the borrower requests a deferment. The selling lender processes this request, applying prudent lending standards and potentially seeking SBA approval if required, continuing to manage the loan as if no portion had been 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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