Glossary · The loan itself
Secondary Market
In short
This is where SBA lenders can sell the guaranteed portion of their loans to other investors. It provides liquidity to lenders, encouraging them to make more SBA loans.
What it means in a deal
Your SBA lender might sell the guaranteed portion of your loan on the secondary market. This doesn't change your loan terms, interest rate, or payment schedule. You'll continue to interact with your original lender or a designated loan servicer.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Secondary Market
- What are the requirements for assigning secondary market loans through SBA Form 1088?
- What specific lender reporting requirements apply to the sale of the guaranteed portion on the secondary market?
- How does the SBA process the guaranty payment to the secondary market investor (Purchaser) for a 7(a) loan?
- How often does the SBA require lenders to report on 7(a) loan portfolio performance for secondary market purposes?
- How does the SBA typically review a lender's loan file in the context of a secondary market audit?
- What are the lender's responsibilities after selling the guaranteed portion of a 7(a) loan on the secondary market?
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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