For SBA lenders
Short answer
To sell the guaranteed portion, lenders require a completed SBA Form 1088 (Assignment of Loan Guaranty), the loan authorization, promissory note, and a Certificate of Incumbency. The assignment must be properly executed.
The SBA's secondary market allows lenders to sell the guaranteed portion of 7(a) loans to investors, providing liquidity. Key documentation includes SBA Form 1088, which formally assigns the guaranty to the investor. Lenders must ensure all required fields are correctly completed, that the assignment accurately reflects the guaranteed amount, and that it is properly executed and recorded to ensure the transfer is valid.
A lender sells the $800,000 guaranteed portion of a $1 million 7(a) loan. They prepare SBA Form 1088, ensuring the loan identification number, guaranteed amount, and assignment details are correct, and provide it along with the original authorization and note to the purchasing investor.
SOP 50 56 - Lender Participation Requirements
Servicing and Liquidation Actions 7(a) Lender Matrix
SBA Document Search
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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