This course provides the foundational knowledge needed to understand SBA 7(a) servicing actions. You will explore the purpose and expectations of loan servicing, understand what authority lenders have, and learn how to assess servicing action requests effectively and compliantly.
By the end of this course, you will be able to:

• Describe SBA’s expectations and goals for loan servicing
• Identify the types of servicing authority and when SBA notification or approval is required
• Follow proper steps to assess servicing action requests
• Recognize key documentation and analysis needed for decision making
• Understand how to obtain approval for servicing actions

This course provides a foundational understanding of common servicing actions encountered during the life of a 7(a) loan. You will learn when and how to initiate, evaluate, and document various types of servicing actions, from changes in note terms and collateral modifications to other key adjustments involving guarantors, ownership, and unique legal circumstances.
By the end of this course, you will be able to:

• Identify common servicing actions and determine when SBA’s approval is required
• Explain the key differences between collateral that is subordinated, substituted, or released
• Recognize more complex servicing actions such as loan assumptions, guarantor changes, and ownership transfers
• Determine which servicing actions fall under lender authority, require SBA notification, or need prior SBA approval
• Use SBA SOPs and available resources to guide compliant and accurate servicing decisions

This course provides a foundational understanding of why SBA 7(a) loans are sold on the secondary market and how prepayments affect both the lender and the investor. You will learn how loans sold impact servicing actions, secondary market reporting, and how prepayments, including the subsidy recoupment fee, influence financial obligations.
By the end of this course, you will be able to:

• Identify why lenders participate in the secondary market and what it means for servicing
• Describe how selling a loan affects servicing responsibilities
• Identify key components of secondary market reporting
• Define the subsidy recoupment fee
• Understand how prepayments affect loans sold on the secondary market

This course provides a foundational understanding of why effective monitoring is essential throughout the life of a loan. You’ll learn how to manage risk through consistent oversight, and the key tasks lenders must complete to protect the guaranty and support borrower success.
By the end of this course, you will be able to:

• Accurately collect, apply, and remit borrower loan payments
• Monitor borrower activity and identify risks through creditworthiness, entity changes, and management covenants
• Apply SBA requirements to maintain proper collateral documentation, lien position, and insurance coverage
• Recognize the importance of ongoing monitoring in preserving loan performance and compliance
• Identify appropriate steps when a loan is paid in full

This course provides a foundational understanding of SBA workout options that support borrower success while protecting the loan guaranty. You’ll learn about common servicing strategies, including deferments, payment modifications, and forbearance agreements, and also more about evaluating financial statements, determining what action to take, and how to document and monitor workouts and recognize the red flags that could signal problems.
By the end of this course, you will be able to:

• Explain the purpose of a workout and identify appropriate use
• Distinguish between deferments, modifications, forbearance agreements, and other workout tools
• Identify required documentation for evaluating a workout request
• Analyze borrower financials and red flags during the servicing review process
• Understand how to document and monitor approved workouts in compliance with SBA requirements