Office of Capital Access | Resources

Time to Request Purchase

A lender first may request payment on the SBA guaranty for loans made under most SBA loan programs following a 60-day uncured delinquency. However, in all loan programs SBA strongly encourages lenders to fully liquidate the loan prior to requesting purchase.
Special rules for certain loan programs:

LowDoc Loans (SOP 50 50 4A Ch. 6, Para. 6.c.)

  • A Lender can request purchase when:

    • Lender has liquidated all personal property, except in bankruptcy situations, an

    • Lender has indicated in writing how it will pursue all other sources of recovery.

  • SBA will pay a maximum of 120 days of accrued interest.

  • SBA will share in the reasonable and necessary expenses on a pro-rata basis up to its share of total recoveries.

SBAExpress loans (SBAExpress Program Guide, Sec. 8)

Express Loans are handled by either the Little Rock or Fresno Commercial loans Centers – whichever is appropriate for your institution.

  • Lender can request purchase when it has fully liquidated all collateral and pursued all avenues of collection. Exceptions:

    • SBA will immediately process the purchase request of all Export Express Loans; and

    • SBA will immediately process the purchase request of any SBAExpress loan that:

      • Has a principal balance of $50,000 or less at the time of the purchase request or

      • Involves, regardless of the loan balance, bankruptcy, judicial foreclosure, litigation or other unusual liquidation circumstances likely to extend the liquidation process more than 90 days past the earliest date that the lender could request purchase. (Generally, the earliest date a lender could request SBA to purchase is when there has been an uncured default exceeding 60 days.)

  • When requesting the purchase of an SBAExpress loan with a balance of $50,000 or less, the lender generally will not be required to substantiate the liquidation of business assets, although the lender must document the liquidation of all business assets in its wrap-up report. SBA will pay up to 120 days of interest.

EWCP (SOP 50 50 4A, Ch. 6, Para. 9.f)

  • Lenders may make demand as soon as the loan is classified as being in liquidation and 30 days after the earliest uncured payment default, but must not make demand later than 180 days after the earliest uncured payment default (See also SOP 50 51 2A, Ch. 10, Para 3).