Glossary · The loan itself
Guaranty purchase claim
In short
This is when a lender asks the SBA to honor its government guaranty after a borrower defaults and the lender has exhausted all recovery efforts. It's the official request for the SBA to pay out.
What it means in a deal
If your SBA 7(a) loan defaults and the lender can't recover enough from collateral or personal guarantees, they'll submit a guaranty purchase claim to the SBA. The SBA then reviews the lender's servicing and liquidation efforts before paying the guaranteed portion. This is a post-default event.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Guaranty purchase claim
- What documentation is required to request a guaranty purchase using the Universal Purchase Package (UPP)?
- What specific documentation must a lender include in a Universal Purchase Package (UPP) for a guaranty purchase?
- What documentation is required for a lender to request a guaranty purchase using the Universal Purchase Package (UPP)?
- What impact does a lender's failure to obtain a required personal guaranty have on a guaranty purchase request?
- What are the key elements a lender must include in a Universal Purchase Package (UPP) submission for guaranty purchase?
- What specific documentation is required for a lender to request a guaranty purchase using the Universal Purchase Package (UPP)?
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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