SBA has posted SOP 50 57 4, 7(a) Loan Servicing and Liquidation.  The new SOP will take effect on November 1, 2025, and will apply to all 7(a) servicing and liquidation actions occurring on or after that date.  Release of the SOP was announced by SBA Information Notice 5000-872353, Issuance of SOP 50 57 4, 7(a) Loan Servicing and Liquidation (effective September 25, 2025). 

According to the notice, changes in the SOP include:  

  • New and updated definitions
  • An increase, from $5,000 to $10,000, to the personal property liquidation value threshold for certain actions;
  • Updates to SBA loan servicing and purchase center contact information consistent with previously announced changes;
  • New Paycheck Protection Program (PPP) record retention requirements;
  • Revised guidance regarding payment of the SBA lenders’ annual service fees;
  • Addition of a new loan status category, “SBA Uncollectible”, used to designate loans when SBA collection efforts have been exhausted, making the loans ready for referral to the Department of Treasury for additional collection activities available to that department;
  • Revisions the sync SBA servicing and liquidation requirements with the requirements in SOP 50 10 8, including the requirements relating to non-citizen owners of loan applicants/borrower; and,
  • Incorporation of SBA loan purchase guidance previously included in SBA Procedural Notice 5000-866946, Revisions to SOP 50 57 3.1 for SBA’s Processing of Lender Guaranty Purchase Requests and Certain Servicing Actions (effective April 15, 2025).

Like SBA, NAGGL encourages lenders to review the entire SOP 50 57 4 to ensure a complete understanding of the policy changes included in the new version of the SOP.  Also, please note that SBA has advised that it has revised the Universal Purchase Package (UPP) and the Servicing and Liquidations 7(a) Lenders Actions Matrix to make the forms consistent with the requirements in the new version of the SOP.  SBA will provide those documents as soon as they are made accessible for persons with disabilities.

Watch for information from NAGGL with details about our upcoming Webinar on the SOP 50 57 4 revisions and the complementary changes in the UPP and the Matrix.  And join us at the NAGGL Annual Conference (October 26-28) where the SBA experts will discuss the changes in detail.