This course introduces the core principles of SBA loan liquidation, including when a loan must be placed in liquidation status and how it is managed during this phase. Learners explore payment application rules, liquidation planning requirements, and common complexities such as bankruptcy and collateral issues. The course also outlines when and how a loan may transition back to regular servicing.

By the end of this course, learners will be able to:

• Identify conditions that require a loan to be classified in liquidation status
• Explain the proper order for applying borrower payments during liquidation
• Recognize when a liquidation plan is required and what it should include
• Determine when an amended liquidation plan must be submitted to SBA
• Understand when a loan in liquidation status may be returned to regular servicing

This course focuses on how collateral is evaluated, managed, and liquidated following borrower default. Learners review real and personal property collateral, recoverable value calculations, and lender responsibilities related to care, abandonment, litigation, and offers in compromise. The course emphasizes practical considerations for maximizing recovery while remaining compliant with SBA requirements.

By the end of this course, learners will be able to:

• Differentiate between real and personal property collateral and understand key liquidation pathways
• Calculate recoverable value using liquidation value, senior liens, and recoverable expenses
• Identify when abandonment is appropriate and what documentation is required
• Explain lender responsibilities when acquiring and caring for collateral
• Describe when and how an Offer in Compromise (OIC) may be used and considerations involved
• Recognize the categories of litigation expenses and when SBA approval is required

This course explains how expenses and recoveries are handled throughout the liquidation process. Learners gain clarity on reimbursable versus non-reimbursable expenses, proper recovery application, and SBA’s pro-rata calculations. The course also introduces the Care and Preservation of Collateral (CPC) Tabs and required supporting documentation.

By the end of this course, learners will be able to:

• Define recoverable and non-recoverable expenses during liquidation
• Apply recoveries in the correct SBA-required order
• Calculate SBA’s pro-rata share of a recoverable expense
• Determine when to deduct expenses from recoveries versus request SBA reimbursement
• Identify the purpose and contents of the Care and Preservation of Collateral (CPC) Tabs
• Understand when and how to submit supporting documentation for recoverable expenses

This course provides an overview of the SBA guaranty purchase process for defaulted 7(a) loans. Learners examine eligibility requirements, Universal Purchase Package (UPP) components, early default considerations, and electronic submission procedures. The course also addresses post-purchase responsibilities, including reporting timelines and resolution options.

By the end of this course, learners will be able to:

• Identify the eligibility requirements for submitting a loan guaranty purchase request
• Navigate the structure, content, and purpose of the Universal Purchase Package (UPP)
• Determine when borrower certification may be used for Tabs 7 and 8
• Understand how to submit a UPP electronically to the appropriate SBA processing center
• Recognize the timeline and conditions for submitting the Wrap-up Report under SBA's Prudent Liquidation Deadline
• Describe the three resolution methods available for SBA-purchased loans

This course outlines how SBA evaluates guaranty purchase requests and the outcomes lenders may receive. Learners review the five possible decisions, how repairs and denials are calculated, and when appeals or voluntary termination may be appropriate. The course provides insight into SBA’s review framework and post-decision considerations.

By the end of this course, learners will be able to:

• Identify the five possible outcomes of a guaranty purchase review
• Explain what triggers a repair and how it is calculated
• Differentiate between a repair, partial denial, and full denial
• Describe the appeal process through SBA’s Office of Hearings and Appeals (OHA)
• Recognize when voluntary termination is appropriate and how to document it

This course covers the final stages of liquidation, including charge-off eligibility, required documentation, and post-charge-off responsibilities. Learners review submission requirements for Charge-off Tabs, Assignment forms, CPC Tabs, and understand the role of the Department of Treasury after referral.

By the end of this course, learners will be able to:

• Identify when a loan qualifies for SBA charge-off
• Describe the required documents and forms for a charge-off request
• Explain the purpose and submission timing of the Assignment form
• Recognize when to submit CPC Tabs for expense reimbursement
• Understand how Treasury collects on SBA charged-off loans
• Follow proper procedures for lender actions after SBA charge-off and Treasury referral
• Recommend to SBA if the loan status should be changed to SBA Uncollectible or Charge-off