SBA Guaranty Is Not Forgiveness
Separate the transfers.
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An SBA 7(a) guaranty does not automatically forgive the borrower’s debt.
Separate two transfers
Fictional: $100,000 principal remains after SBA’s $75,000 purchase of the guaranteed portion. Assume no release, settlement or other credit. The purchase is not a borrower payment.
A later $10,000 borrower payment entirely to principal leaves $90,000. Assume no interest, fees or other changes. This is not a payoff quote.
Get the current record
SBA describes lender purchase requests after default. Treasury’s February 2023 guide describes possible federal claims after a guaranty is honored. Actual rights depend on documents and law. Ask the servicer for balances, payment instructions and written releases or settlements.
Business Casualty Loss Measures
Distinguish damage outcomes.