For SBA lenders
Short answer
The selling lender retains the primary servicing responsibilities and must continue to report loan status, payments, and any material changes to the SBA and the secondary market purchaser.
Even after selling the guaranteed portion, the originating lender remains the 'Holder of the Note' for the unguaranteed portion and the primary servicer for the entire loan. They are responsible for collecting payments, processing servicing actions, and submitting monthly reports to the SBA via E-Tran and to the registered holder (investor) of the guaranteed portion, including loan status and any significant events.
A lender sells a $750,000 guaranteed portion of a $1,000,000 7(a) loan. The lender continues to service the entire $1,000,000 loan, collects payments from the borrower, and remits the guaranteed portion to the investor monthly, while also reporting to the SBA via E-Tran.
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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