What specific documentation is required in the Universal Purchase Package (UPP) to support a request for guaranty purchase when the borrower has defaulted due to fraud?

The rule

The Universal Purchase Package (UPP) is used to request SBA to honor its guaranty. If the default is due to fraud committed by the borrower, the lender must provide clear and convincing evidence of the fraud. This includes all documentation from the lender's investigation (e.g., forensic audits, police reports, legal filings), evidence of any attempts to recover funds, and detailed calculations demonstrating the loss directly resulting from the fraudulent activity. The SBA will scrutinize whether the lender acted prudently throughout the loan's lifecycle and during liquidation, despite the fraud.

Facts that matter

• ✓Universal Purchase Package
• ✓Guaranty purchase request
• ✓Borrower fraud
• ✓Evidence of fraud