Glossary · The loan itself
Servicing Action
In short
Any change or modification made to an SBA loan after it's closed, like deferring payments or changing collateral. These require SBA approval, often through E-Tran.
What it means in a deal
After your SBA loan closes, the lender performs "servicing" activities. If circumstances change (e.g., you need to sell a piece of collateral, or request a temporary payment deferral), the lender must get SBA approval for these "servicing actions." Be aware that significant changes can impact your loan terms or even trigger a review of your loan's compliance.
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 Servicing Action
- What specific actions constitute an 'unapproved material servicing action' that could lead to a 7(a) guaranty repair or denial?
- How does an unapproved material servicing action impact the SBA's 7(a) loan guaranty?
- When can a lender request prior approval from the SBA for a significant servicing action?
- What information must a lender provide to the SBA when requesting prior approval for a significant servicing action?
- What is the impact of an unapproved material servicing action on the SBA's 7(a) loan guaranty?
- What constitutes a 'material change' to collateral that requires prior SBA approval for a 7(a) loan servicing action?
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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