# What happens at SBA's Loan Guaranty Processing Center?

**Short answer:** The Loan Guaranty Processing Center reviews non-delegated 7(a) applications and approves or declines them in the SBA Loan System. It also handles certain changes before final disbursement and reconsideration requests. Source: SOP 50 10 8.1, Appendix 20, Para. A.

Canonical page: https://www.sbaexpress.loans/answers/what-happens-at-sba-loan-guaranty-processing-center/
Last checked: 2026-11-09

The Loan Guaranty Processing Center, or LGPC, reviews non-delegated 7(a) applications. SOP 50 10 8.1, Appendix 20, Para. A (p. 416) places it in Citrus Heights, California, and Hazard, Kentucky.

## What SBA decides

On a non-delegated application, SBA makes the final determination on eligibility and creditworthiness. That covers the use of proceeds, the collateral, the loan structure and any equity contribution. SBA approves or declines in the SBA Loan System.

## What the lender must upload

Applications and attachments go through the SBA Loan System. Appendix 20 flags these items for non-delegated submission:

- The lender's credit memorandum.
- Owner financial statements.
- Business financial statements or tax returns for the last 3 years, plus interims.
- On a business purchase, the valuation, pro forma balance sheet and seller's financial statements.
- A cost breakdown for any real estate improvements.
- Refinancing documents and proof of U.S. National status, if they apply.

A personal credit report dated within 90 days goes in too (Sec. B, Ch. 1, Para. C.2.a).

## What else the center handles

- Changes needing prior SBA approval before final disbursement (Sec. B, Ch. 6, Para. B.1).
- Transfers of a guaranty between lenders before final disbursement (Para. C.1).
- Requests to reconsider declined applications (Appendix 20, Para. A).

## Where you fit in

Your lender deals with the center, not you (sba.gov/loans/7a-loans, read November 8, 2026). A loan under delegated authority gets no credit review there before its loan number issues.

## Sources

- [SOP 50 10 8.1, Appendix 20, Para. A (pp. 416-418)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 1, Para. C.2.a (about p. 119)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 6, Paras. B and C (pp. 205, 207)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA, 7(a) loans, sba.gov/loans/7a-loans (read November 8, 2026)](https://www.sba.gov/loans/7a-loans/)