Glossary · The loan itself
Guaranty purchase request
In short
When a lender requests the SBA to buy back the guaranteed portion of a defaulted loan. This happens when the lender has exhausted all recovery efforts.
What it means in a deal
If your SBA 7(a) loan defaults and the lender can't recover enough through liquidation, they'll submit a guaranty purchase request to the SBA. This triggers the SBA to pay the lender for its guaranteed percentage, but doesn't relieve you of your debt. The SBA then pursues recovery directly from you.
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 request
- What documentation is required to request a guaranty purchase using the Universal Purchase Package (UPP)?
- What constitutes a "repair" to the SBA guaranty during a purchase request?
- How does a lender request an SBA guaranty purchase after loan default?
- What documentation is required for a lender to request a guaranty purchase using the Universal Purchase Package (UPP)?
- What is the key impact of a 'repair' on an SBA guaranty purchase request?
- What impact does a lender's failure to obtain a required personal guaranty have on a guaranty purchase request?
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.
See which SBA lenders would fund your deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to approve a 7(a) like yours and flag what trips up approval.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.