Glossary · People and paperwork
Assignment of Guaranty(SBA Form 1088)
In short
A document where the SBA transfers its interest in a loan guaranty from one lender to another. This is an internal SBA process, not something buyers directly handle.
What it means in a deal
This form is used when the SBA sells its guaranteed portion of a loan on the secondary market to investors. As a borrower, you won't typically interact with this form, but it ensures the underlying SBA guaranty on your loan remains valid, regardless of who holds the guaranteed portion.
Official sources
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.
Related terms
Common questions about Assignment of Guaranty
- How does a collateral assignment of life insurance protect a lender?
- When does the SBA typically mandate collateral assignment of life insurance for a business loan?
- How does a lender ensure proper collateral assignment of life insurance on multiple key principals?
- When is collateral assignment of life insurance required for principals on an SBA 7(a) loan?
- Does the SBA typically require an assignment of life insurance as collateral for key principals in an acquisition?
- When is a collateral assignment of life insurance on a key principal mandatory for an SBA 7(a) loan?
Defined by CapBench 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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