Glossary · People and paperwork
In short
An entity that buys the guaranteed portion of your SBA loan from the originating lender. This practice helps lenders free up capital to make more loans, but it doesn't change your loan terms or who you make payments to.
After your SBA loan closes, the lender often sells the SBA-guaranteed portion to a secondary market purchaser. This is standard practice and doesn't affect your obligations or the servicing of your loan; you still deal directly with your primary lender. The SBA guaranty ensures the purchaser's investment is protected.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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