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Guaranty Purchase

SBA reviews a lender’s request that SBA honor (purchase) the guaranty, this review determines if the lender has complied with the SBA loan authorization for the loan, SBA requirements, and prudent lending practices. The amount and types of documentation that the lender must include in its guaranty purchase package depends on the type of loan, use of proceeds, collateral, and other factors. SBA conducts its review prior to purchasing its guaranty when SBA purchases directly from the lender ("pre-purchase review"), and conducts its review after purchasing its guaranty when SBA purchases directly from the secondary market holder ("post-purchase review"). SBA rarely purchases without a lender demand, but it has regulatory authority to do so in its sole discretion (13 C.F.R. § 120.520).

  • Requesting Purchase for a 7(a) Loan

    View the following resources for information on when and how to request purchase for a 7(a) loan.

  • Preparing a 7(a) Purchase Package

    To start the guaranty purchase process, the lender must first make demand for the repurchase of the guaranty. For your convenience we have provided the following resources for your use in preparing the purchase package.

  • Preparing an Express Purchase Package
    The SBA Express program has several unique features that make it different from other 7a loans. One of the most important differences is the requirement that all liquidation or collection activity must be completed before the demand...
  • Electronically Submit Your Package
    Introducing Sendthisfile, SBA's new File Transfer Service What to expect when you press the CONTINUE button at the bottom of this screen: When you click the Continue button below, you will be directed to SBA's new File...
  • Denials of Liability & Repairs
    SBA’s general policy for guaranty purchases is to reach a fair decision based on a thorough review of lender’s purchase request and all relevant documentation. If a lender has been deficient in its handling of a loan,...
  • Top Reasons for Repair & Denial
    Lien and Collateral Issues that Result in Missed Recoveries (Generally a Repair) Failure to obtain required lien position Failure to properly perfect security interest Failure to fully collateralize loan...
  • Secondary Market Purchase
    SBA strongly encourages lenders to purchase directly from the secondary market holder those defaulted loans that lenders had sold in the secondary market after loan closing. Should the primary lender refuse to purchase SBA will...

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Submit documents electronically to an SBA Loan Center using SendThisFile, or use the E-Tran tool for 7(a) applications.