For SBA lenders
Short answer
After selling the guaranteed portion of a 7(a) loan on the secondary market, the lender (or servicer if different) retains all primary servicing responsibilities and must continue to report loan status, payments, and any material servicing actions to the SBA via the appropriate systems (e.g., Colson).
Even after securitizing and selling the guaranteed portion of a 7(a) loan on the secondary market, the originating lender (or a designated servicer) remains the 'holder of the unguaranteed portion' and is responsible for all aspects of loan servicing and liquidation. This includes collecting payments, managing escrow accounts, responding to borrower requests, and enforcing loan terms. The lender must continue to report all loan activity, including payments, delinquencies, and any servicing actions, to the SBA through the Colson Services reporting system, typically on a monthly basis, to maintain the integrity of the guaranty and facilitate secondary market operations.
A lender sells the guaranteed portion of a $1 million 7(a) loan. Monthly, the lender collects payments from the borrower, processes them, and then electronically reports the payment status, outstanding balance, and any relevant loan activity to the SBA via Colson, ensuring the secondary market investor receives their proportional share of principal and interest.
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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