Glossary · Doing the deal
Secondary market audit
In short
An examination of a lender's SBA loans by a third-party or the SBA after the guaranteed portion has been sold to investors. It ensures compliance with SBA rules and proper loan servicing.
What it means in a deal
After your loan closes, the lender might sell the SBA-guaranteed portion on the secondary market. The audit verifies the loan met all SBA requirements at origination and is being serviced correctly. While it doesn't directly impact your loan terms, it's part of the broader ecosystem of SBA lending.
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 Secondary market audit
- How does the SBA typically review a lender's loan file in the context of a secondary market audit?
- 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?
- 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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