For SBA lenders
Short answer
A lender must submit the UPP to the SBA within 120 days of the liquidation value being fully maximized, or within 120 days of completing liquidation actions, whichever is later.
The SBA requires lenders to diligently pursue liquidation and then promptly submit the UPP to request guaranty purchase. The 120-day timeframe ensures timely processing of the guaranty request once all reasonable recovery efforts have been exhausted and documented.
A lender finishes foreclosing on real estate collateral and liquidating equipment for a defaulted 7(a) loan on June 1st. All proceeds are applied to the loan. The lender must submit the complete Universal Purchase Package to the SBA by September 29th (120 days later).
Insider move
Failure to submit the UPP within the specified timeframe can lead to a reduction in the SBA's guaranty percentage or outright denial, as it may indicate a lack of prudent liquidation efforts.
Universal Purchase Package (UPP)
SOP 50 57 - 7(a) Loan Servicing and Liquidation
Request to Honor SBA 7(a) Loan Guaranty
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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