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Who services an SBA 7(a) loan after it closes?

Short answer

Your lender does. 13 CFR 120.535 requires lenders to service 7(a) loans as diligently as their other loans. The lender stays responsible until SBA honors its guarantee in full. SBA can take over servicing at its discretion.

Your lender services the loan. 13 CFR 120.535(a) requires it to service 7(a) loans no less diligently than its non-SBA portfolio, using prudent lending standards.

What stays with the lender

The lender remains responsible for servicing and liquidation until SBA honors its guarantee in full. SBA can say otherwise in writing (13 CFR 120.524(e)). A Lender Service Provider may help, but the lender must keep day-to-day responsibility (SOP 50 10 8.1, Sec. A, Ch. 4, Para. D.5).

What the rules require

Once a loan is disbursed, lenders must follow the servicing and liquidation rules in SOP 50 57 (SOP 50 10 8.1, p. 9). SBA's lender page says:

Where SBA comes in

SBA's Commercial Loan Servicing Center handles requests that need SBA's approval. Lenders report to SBA on SBA Form 1502. SBA's prior written consent is generally needed for certain actions. They include raising principal above the authorized amount, compromising principal and selling more than 90% of a loan (13 CFR 120.536(a)).

SBA may take over servicing of any 7(a) loan in its sole discretion. It will notify you if it does (13 CFR 120.535(d)).

Your contact

Your lender is your point of contact (sba.gov/loans/7a-loans). SOP 50 57 is not among the sources behind this page, so confirm any specific procedure with your lender.

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