For SBA lenders
Short answer
Lenders must request prior approval for servicing actions that exceed their delegated authority, such as major collateral substitutions, changes to ownership or management, or significant loan modifications outside matrix limits.
The Servicing and Liquidation Actions 7(a) Lender Matrix clearly delineates the scope of delegated authority for lenders. Any proposed servicing action that falls outside these limits requires a formal request for prior approval from the SBA to maintain the guaranty.
A borrower requests to substitute a major piece of collateral (e.g., a commercial building) for a significantly different asset. The lender, consulting the Servicing Matrix, determines this requires prior SBA approval and submits a detailed request outlining the rationale and impact.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Servicing and Liquidation Actions 7(a) Lender Matrix
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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