Many servicing changes to an SBA loan authorization may be made by a lender if the action falls within a lender’s unilateral authority. However, as set forth in 13 CFR 120.536, some servicing actions require SBA’s prior written consent. View the handy Servicing and Liquidation Actions 7(a) Matrix. 

• Increases to the SBA loan amount or guaranty percentage.
• Reinstatement of SBA Guaranty.
• Compromises on the principal balance of a loan.
• Taking title to any property in the name of SBA.
• Taking title to environmentally contaminated property, or taking over operating and control  of a business that handles hazardous substances.
• Transferring, selling or pledging more than 90% of a loan.
• Release of an obligor.
• Any action for which prior written consent is required by a Loan Program Requirement.
• Any action that confers a preference on the lender or engages in an activity that creates a conflict of interest.  As defined in 13 CFR § 120.10, preference is any arrangement giving a Lender a preferred position compared to SBA relating to the making, servicing, or liquidation of a business loan with respect to such things as repayment, collateral, guarantees, control, maintenance of a compensating balance, purchase of a Certificate of deposit or acceptance of a separate or companion loan.

If you have questions about litigation plans and fees, please contact your Lender Relations Specialist.