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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 13 - Business Credit and Assistance |
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Chapter I - Small Business Administration |
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Part 120 - Business Loans |
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Subpart E - Servicing, Liquidation and Debt Collection Litigation of 7(a) and 504 Loans |
§ 120.512 - Who services the loan after SBA honors its guarantee?
Latest version.
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Generally, after SBA honors its guarantee, the Lender must continue to hold the Loan Instruments and service and liquidate the loan. The Lender must execute a Certificate of Interest showing SBA's percentage of the loan, and must submit a liquidation plan to SBA for each loan to be liquidated. If SBA elects to service or liquidate the loan, the Lender must assign the Loan Instruments to SBA.