Preparing for CDC/504 Servicing

What Services do the Commercial Loan Centers (CLCs) Provide?

The Commercial Loan Centers (CLCs) address servicing and workout request on lender serviced loans as well as XGP and 504 loan servicing issues. Commercial Loan Centers (CLCs) also address liquidation requests for lender serviced SBAExpress (including Community Express) and 504 loans.

All liquidation and guaranty purchase request for regular 7(a) Business Loan (including LOWDOC loans) are addressed by the National Guaranty Purchase Center (NGPC).


Each month, the commercial loan service center receives hundreds of loan servicing actions which can be processed under the lender’s delegated unilateral servicing authority.  Many common unilateral servicing actions do not require any sort of submission to SBA. This is based upon the SBA loan servicing regulations (13 CFR §§ 120.535 and 120.536) which went into effect May 10, 2007 (SBA notice 5000-1017).

We have developed a handy guide to assist you on what actions require submission to the Center.

Click to View the Lender Matrix for Servicing and Liquidation Actions

Your Servicing Request May Require All or a Portion of the Following Items

  1. A statement of the proposed action and a brief description of what makes the request necessary.

  2. Status of the SBA loan (date and amount funded, current balance and status). Identification of obligor.

  3. A summary of the analysis of the business, including analysis of financial statements.

    • Before and after collateral analysis, for action that affect the collateral.  (collateral now and what it would be if request were approved)

  4. Summary of prior servicing experience with the borrower, e.g., loan modifications and/or problems pertinent to the request.

  5. Identification of guarantors/co-makers and a statement as to whether their consent has been or will be obtained for the action.

  6. A Summary of the impact/benefit of the action on the business.

    • Will the proposed action address the needs or solve the problems of the business?

    • Will the action protect the interest of the lender/CDC and SBA?

  7. A Servicing Checklist for certain PLP/SBAExpress and LowDoc servicing requests may be submitted in order to facilitate review.

  8. For those CDC actions requiring SBA approval, common loan servicing request templates may be submitted in order to facilitate review

Common Servicing Requests

Other common servicing requests include:

  1. Reinstatements

    • Loans that have been erroneously reported as Paid in Full.

    • Loans that have been cancelled due to non payment of SBA guaranty fee.

  2. Transfer of Participation

How to Request a Servicing Action

A clear and concise cover letter drawn from information in the lender internal credit memorandum generally suffices as the servicing request to us. If the cover letter addresses the request and describes the supporting analysis, you do not need to submit additional information. The SBA reserves the right to request additional information as individual circumstances require.

When submitting by fax or email to the Commercial Loan Centers actions that involve complex credit or collateral issues, it would be beneficial to include the lender internal credit memorandum with the servicing request. If the credit memo includes your analysis of the borrower’s financial statements, (servicing action supporting schedule) please do not submit to us a copy of the financial statements. Similarly, if your credit memo describes the collateral analysis and basis for collateral valuation, please do not submit to us copies of appraisals or other documents related to collateral.

In general, servicing requests must address a common set of elements. These elements allow the lender and SBA to quickly understand the request, the status of the SBA loan(s), the condition of the borrower’s business and other factors important to the decision.

Map of Geographic Coverage's

What if I Have Questions Concerning my Servicing Request?

Please feel free to contact us via email, fax or phone if you have questions. Our hours are 8:00 am to 4:30 pm Monday – Friday.